Bitcoin’s Largest Backer Announces $ 94 Million Investment Amid $ 250 Billion Crash In Crypto Market

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MicroStrategy, the data analytics firm run by bullish cryptocurrency billionaire Michael Saylor, announced its latest big bitcoin investment on Thursday morning, once again doubling its staggering commitment to the world’s largest cryptocurrency while the market is reeling from a downside that has driven prices down further. 30% below an all-time high set last month.

Data analytics firm run by billionaire Bitcoin Bull Michael Saylor now has around $ 5.9 … [+] billion dollars worth of bitcoins.

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In a regulatory filing Thursday, Virginia-based MicroStrategy, which has more bitcoin than any other company in the world, revealed that it bought about 1,914 bitcoin for about $ 94.2 million in cash, or $ 49,229 per coin. , between December 9 and December 29.

The company says it now owns around 124,391 bitcoin, purchased for almost $ 3.8 billion, for an average price of $ 30,159 per coin.

MicroStrategy’s latest investment comes as the price of bitcoin struggles near a two-month low after selling nearly 10% on Tuesday, which pushed prices down to about 17% below late-end levels. last month, putting bitcoin on track for its worst monthly performance since May.

Fueling price volatility, more than $ 6 billion in options contracts are set to expire on Friday, forcing investors to double risky bets or unwind positions, analysts at British cryptocurrency broker GlobalBlock said.

MicroStrategy helped fund the purchase using the proceeds from a previously disclosed stock offering in June that has so far raised around $ 1 billion from investors, including a lot of sales this month. for about $ 565.78 per share.

Shares of MicroStrategy, which also used newly issued debt to buy bitcoin during the pandemic, jumped about 1.4% Thursday morning and is up about 33% this year despite falling more than 7%. % since the crypto sale on Tuesday.

Large number

$ 5.9 billion. That’s the value of MicroStrategy’s bitcoin holdings on Thursday, given prices of around $ 47,400 per coin.

Key context

Thanks to its growing investment in bitcoin, which is matched only by Tesla’s 42,000 coins, MicroStrategy has achieved a startling turnaround since the dot-com bubble caused its stock prices to plummet about two decades ago. Shares have climbed nearly 285% since the company started buying bitcoin in August 2020. However, prices have also been incredibly sensitive to the outsized volatility of the nascent crypto market. The stock slumped more than 55% from a 21-year high in February, when bitcoin prices recently skyrocketed after Tesla CEO Elon Musk said on Twitter that its prices seemed “a little high”.

Surprising fact

After peaking at nearly $ 3 trillion on November 10, the crypto market has now reached a total market cap of around $ 2.2 trillion.

Further reading

Elon Musk reveals theory of Bitcoin creator Satoshi Nakamoto, admits he is not getting Ethereum, issues Dogecoin Mars prediction amid crypto price collapse (Forbes)

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