MicroStrategy, a US-based business intelligence company, announced recently that it had acquired 5,050 Bitcoin in exchange for $243 million cash.
According to Michael Saylor, MicroStrategy’s CEO, the company now holds 114,042 Bitcoin. MicroStrategy purchased 3,907 Bitcoin for $177 Million in Cash in August 2021.
MicroStrategy’s Bitcoin portfolio has grown significantly since the beginning of 2021. This Nasdaq-listed company holds the largest number of institutional holders of the most valuable cryptocurrency in the world. MicroStrategy’s stock price jumped nearly 5% following the announcement of Bitcoin.
MicroStrategy purchased 5,050 additional bitcoins at a price of $48,099 per BTC. “We currently hold 114,042 Bitcoins at an average price $27,713 per BTC as of 9/12/21,” Saylor stated in a tweet.
Despite volatility in the prices, institutional adoption has grown significantly since the beginning of 2021. The large acquisitions of Bitcoin by the US-based Tesla and the Asian firm Meitu were made during the first half 2021. El Salvador, a Central American nation, has recently declared that it plans to exempt foreign investors tax on BTC profits. Nayib Bukele (the President of El Salvador) revealed last week that the country now holds 550 BTC.
Bitcoin’s Weekly Price Action
BTC experienced extreme volatility last week, as its price plunged by almost $10,000 in 12 hours starting on September 7. Its on-chain activity was positive, however, as long-term Bitcoin owners increased accumulation.
The Bitcoin market suffered a volatile sell-off in the early part of the week. Prices initially broke up at a $52,849 local high, before falling to a low point of $44,196. The historically significant trend of long-term investment accumulation and investor accumulation remains intact in both spot and on-chain market. Despite a more than 50% sell-off in May, a strong rally to the $29k lows and now another sharp sell off this week, HODLers seem unphased,” Glassnode, a crypto analytics platform, stated.