In a move that highlights the company’s ongoing commitment to accumulating Bitcoin, MicroStrategy has invested $209 million to purchase 2,136 additional units of the cryptocurrency. This acquisition brings the total number of Bitcoins held by the company to over 446,000, valued at approximately $41.5 billion as of current market prices.
Accumulation Strategy Bears Fruit
This latest investment marks the eighth consecutive Monday purchase made by MicroStrategy, underscoring the company’s dedication to its accumulation strategy. With this latest addition, the firm’s overall expenditure on Bitcoin now exceeds $27.9 billion, with an average price paid per unit of $62,428.
Current Holdings Valued at Over $41 Billion
At current market prices, MicroStrategy’s Bitcoin holdings are valued at more than $41.5 billion. This represents an unrealized profit exceeding $13 billion compared to their cost basis. Despite recent fluctuations in Bitcoin’s price, which has dropped by 15% since reaching an all-time high last week, MicroStrategy remains committed to its long-term strategy.
Market Reaction Mixed
Not everyone is convinced that MicroStrategy’s purchases will continue to drive up Bitcoin’s price. Peter Schiff, a well-known critic of cryptocurrencies, took issue with the company’s decision to make smaller buys at higher prices. However, others see these moves as part of a broader trend towards increased institutional involvement in the crypto space.
Contextualizing Recent Market Volatility
Bitcoin’s price has indeed experienced some volatility in recent weeks, dropping from over $108,000 to its current level of around $93,000. This decline follows the Federal Open Market Committee (FOMC) meeting earlier in the month.
By continuing to invest in Bitcoin despite market fluctuations, MicroStrategy demonstrates its confidence in the long-term potential of the cryptocurrency market.
Source: Cryptopotato.com
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