While the bear market worries many crypto investors, it is an opportunity for others. The company Microstrategy announced that it has purchased 2,500 more bitcoins! This brings the company’s Bitcoin treasury to 132,500 BTC. While Microstrategy’s average purchase price is $30,397, the company is counting on the holding to turn a profit.
Microstrategy recovers 2500 Bitcoins from the market
The crypto bear market scares many crypto investors, but not all. Those who want to hold on for a long time see the bear market as an opportunity to better strengthen their cash position. This is the case with the company Microstrategy. Its founder and CEO Michael Saylor announced the acquisition of 2500 Bitcoins.
This new purchase makes Microstrategy one of the largest Bitcoin-holding companies in the world. In fact, the company’s treasury now consists of 132,500 Bitcoins acquired at a price of $4.03 billion. Microstrategy’s average purchase price is $30,397 for one Bitcoin. That’s almost double the current value of Bitcoin, which hovers around $16,500. Is this the end for Microstrategy? Not really.
Microstrategy gets a good deal
It’s true that today Microstrategy’s 132,500 bitcoins are worth nearly $2.2 billion when they were acquired at $4.03 billion. For many, this clearly appears to be a loss-making investment. However, this is not the case, because as they say: not sold, not lost. The company’s strategy remains the same: accumulate Bitcoins and HOLD.
El Salvador is doing the same thing. Since the adoption of Bitcoin as legal tender in El Salvador, the country has been steadily increasing its Bitcoin treasury. Since November 2022, El Salvador has been strengthening its Bitcoin stockpile in DCA mode by purchasing one Bitcoin every day. At the moment, this acquisition is at a loss and has brought legal action against President Nayib Bukele. Nevertheless, it is a bet that will probably win in the long run.
Because of his purchases of Bitcoins, Michael Saylor is seen as a genius by some and a fool by others. This is also the case with Nayib Bukele who started his nation on the path to the Bitcoin revolution. In which camp are Saylor and Bukele? Let’s wait 2-3 years to find out if they are visionaries or fools.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.
