Which cryptocurrency did it endure?

The data analysis company MicroStrategy, led by billionaire and "bull" of the most popular cryptocurrency in the world, Michael Saylor, announced on Thursday, December 9, that:

It proceeded to the second round of Bitcoin acquisition during the last slump of crypto, using the proceeds from the sale to boost its share of the digital currency market to unprecedented levels.

In a briefing to regulators, MicroStrategy - based in Virginia, USA, which owns more Bitcoin than any other company in the world - said it bought about 1,434 Bitcoin for $ 82.4 million in cash between November 29 and December 8 and now holds 122,478 Bitcoin. It was preceded by the purchase of 7,002 Bitcoin for about $ 414.4 million in cash, or $ 59,187 per currency, from October 1 - November 29, 2021.

Despite MicroStrategy's colossal investment, Bitcoin is struggling to recover from some of its $ 69,000 record high in November, with its price collapsing by almost 20% two weekends ago in the aftermath of the announcement for the detection of the new Omicron mutation of the coronavirus, which caused a sell-off in the world markets.

after they announced the detection of the new Omicron mutation

Although it is still showing an impressive rally of 160% since the beginning of the year, Bitcoin has fallen around 30% in the last month.

MicroStrategy financed its recent purchases using the proceeds from the shares it sold in June, raising about $ 500 million worth of Bitcoin in the fourth quarter.

The share of MicroStrategy, which during the pandemic issued a bond to buy Bitcoin, recovered on Friday a part of the losses recorded on Thursday (-5%) when it announced the purchase of other Bitcoin, while since the beginning of the year, it has strengthened by about 43%.

After the last investment, the combined value of Bitcoin held by MicroStrategy amounts to $ 6 billion, a return of about 64%, after spending $ 3.7 billion in purchases.

 MicroStrategy owns more Bitcoin than any other listed company. Only Greyscale, the world's largest digital currency administrator, surpasses it with 654,885 tokens worth $ 32 billion on Thursday.

Finding support for boosting global inflation to decades high and institutional investors turning to crypto, the cryptocurrency market capitalization has hit a record high of more than 3 trillion. In November, however, on Thursday - when MicroStrategy announced the acquisition of another Bitcoin - it had fallen by $ 700 billion to 2.3 trillion.

The dot.com bubble era about two decades ago, the dot.com bubble era passed irrevocably for Microstrategy, thanks to its growing investment in Bitcoin - only Tesla is in a competitive radius, holding 42,000 tokens.

 The stock has jumped more than 380% since August 2020, when the company first bought Bitcoin, although it is sensitive to the high volatility of the emerging cryptocurrency market. 

MicroStrategy's share remains 50% lower than the 21-year high last February 2021, when the Bitcoin rally followed the slump after Tesla CEO Elon Musk commented on Twitter that the price of the popular digital currency seemed "somewhat too high."

 At the time, according to Forbes, Saylor, valued at about $ 2.3 billion, reacted by saying that MicroStrategy's insistence on investing in the world's largest cryptocurrency "is due to the company's belief that Bitcoin can act as a reliable storehouse of value. "

Jonathan Ponciano wrote the article.

Our articles are for informational purposes only and do not replace specialized consulting services with professional experts.