MicroStrategy has hit another $10 million purchase after March 4 (Thursday’s) market uncertainty.
It has been reported that Michael Saylor, the CEO of MicroStrategy, said that the company purchased another 205 BTC at an average price of $48,888, spending $10 million in cash to do so. This puts the company’s total Bitcoin holdings at 91,064 BTC worth $4.3 billion. The total cost basis of the BTC is $2,196 billion with an average purchase price of $24,119.
However, MicroStrategy’s latest Bitcoin purchase is one of its many “symbolic” buys where the company puts a few more million in BTC after every dip. While the software company began putting its existing assets into BTC in 2020, back when Bitcoin traded around $10,000, its latest purchases have yet to break even.
MicroStrategy is unperturbed by recent market action. It bought another $10 million in this dip, a symbolic gesture that is particularly notable in the current market. https://t.co/Hb471aRNSd — Cointelegraph (@Cointelegraph) March 5, 2021
The report said that the latest major purchase, funded by a bond offering of $900 million, was done at an average price of $52,700 per BTC. Bitcoin’s price has wavered ever since amid a worsening outlook for risk assets on Wall Street.
As per the sources, Thursday’s buy coincided with a period of heightened tension on markets, as Fed chair Jerome Powell signaled that bankers do not think current conditions require additional intervention.
Bond yields have been on a steady and powerful rise in the past weeks, which traditionally signals recovery from a recession and heightened inflation expectations. This should normally reflect well on stocks and risk assets, but the narrative behind 2020’s unstoppable rise strongly relied on low bond yields and continuous Fed intervention as justification for heightened valuations.
Wall Street tension seems to be having some effect on Bitcoin, though MicroStrategy seems keen to continue on its previous path.
Thus, Thursday’s purchase is largely symbolic, but the more important indicator is that MicroStrategy did not sell, despite its stock price has fallen 50% since February highs.
Source: Cointelegraph | Image: Smart Brief