Microstrategy increases its Bitcoin holding by investing further US$ 10 Million amid Bitcoin’s great fall. The company now owns and possesses approximately 70,784 number of Bitcoins.
Microstrategy has recently poured into yet another investment into Bitcoin. This is its 2021’s first investment into Bitcoin. Earlier the multi-billion dollar company had invested in Bitcoin for several times in 2020. It wouldn’t be wrong to suggest that Microstrategy was one of this company which helped Bitcoin’s adoption at the institutional level.
Yesterday on 22nd January, 2021, Bitcoin’s value dropped and it went dramatically low as US$30,490 but it retreated back and retrieved US$2,000. By the time of writing this piece, Bitcoin’s value as per the Coindesk index is US$ 33,340 wherein an increase is expected for about 5.12%.
When the coin’s value dropped, many potential investors pulled off their money from the table and became reluctant. However, for many investors, the dip came as a blessing and they immediately started to inject money into Bitcoin. Was it a smart move or not, only time will tell but most importantly, Microstrategy hasn’t lost a bit of its faith into Bitcoin. The Nasdaq listed company, Microstrategy, took out US$ 10 Million from its reserve and bought another chunk of Bitcoin on 22nd January, 2021.
Microstrategy is one of the leading companies whose Bitcoin holding is strikingly getting bigger and better. With further investment of 10 Million Dollars for purchasing 314 BTC, Microstrategy is now holding a total of 70,784 Bitcoins. It was also reported that the Bitcoin purchase transaction of Microstategywas a cash transaction.
Since the company started to invest in Bitcoin, it saw an instant value increase of its stocks as well as of its market capitalization. As of today, Microstrategy’s market capital has gone above US$5 Billion and Bitcoin can be regarded as value booster for the company.
Following the investment, the company’s CEM, Michael Saylor said that they had invested further money into Bitcoin as per their Treasury Reserve Policy. He also told that the 314 Bitcoins have been purchased for an amount of US$ 31,808 per coin.
On 8th January, 2021, when Bitcoin reached its all-time high, it suffered a massive dip and lost an average value of about 22%. Since then Bitcoin is struggling to stand between the price ranges of US$ 35,000 and 40,000. But currently hovering over US$ 33,000, a value which is relatively quite low from its expected price range. Resultantly, the morale of Bitcoin investors has gone down considerably and for the time being they are reluctant to join the bandwagon.
In the meanwhile, a famous US investor, Mark Miller, said that those who think they should not investment in Bitcoin currently are wrong. He argued that if Bitcoin would continue to obtain high values then the volatility risk will be reduced automatically. The greater the value, the lesser the risk, he concluded.