MicroStrategy Acquires $10M worth of Bitcoin at $20.8K

Key Takeaways

  • Bitcoins were purchased at around $10 million – an average price of $20,817 per coin during the period between May 3 to June 28.
  • The acquisition has bought the company holdings to 129,699 bitcoins (BTC) acquired for $3.98 billion, or an average cost of $30,664 each. 

Michael Saylor, Founder, and CEO of MicroStrategy, took to Twitter to announce the acquisition of another 480 Bitcoins by the company. Bitcoins were purchased at around $10 million – an average price of $20,817 per coin, during the period between May 3 to June 28.

MicroStrategy buying the dip has bought the company holdings to 129,699 bitcoins (BTC) acquired for $3.98 billion, or an average cost of $30,664 each. Bitcoin is currently priced at around $20,100, making MicroStrategy’s stash worth approximately $2.6 billion. Earlier this month when Bitcoin fell through the $21,000 level at, MicroStrategy has to put up extra cryptocurrency as collateral to back a secured loan taken out this year.

The latest acquisition has spurred up discussions regarding MicroStrategy buying more bitcoin, even as many crypto enthusiasts speculated that the company would face margin calls if Bitcoin’s price falls below USD 21,000. Michael Saylor has, however dismissed talks of a margin call by stating that BTC would need to fall to as low as USD 3,562 before a loan it has with Silvergate Bank would require additional collateral.

Saylor strongly believes that almost no price is low enough at which his firm would need to be a forced seller of bitcoin. The US-based enterprise software firm has taken a bitcoin-secured loan of $250 million from Silvergate Bank, with the company planning to use the money to buy even more Bitcoin.

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Saniya Raahath

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