It’s time to go back to stock up on bitcoins on the MicroStrategy side. The company specializing in publishing decision-making software has just resumed buying the flagship cryptocurrency after a four-month break following the market collapse. Rarely does the company pay so little for the token.
This Wednesday, December 28, its co-founder and Executive Chairman Michael J. Saylor tweeted that he had added to the treasury 2,500 BTC, acquired at a price of less than $17,000 during the day of December 27.
MicroStrategy has increased its #Bitcoin Holdings by ~2,500 #BTC. As of 12/27/22 @MicroStrategy holds ~132,500 bitcoin acquired for ~$4.03 billion at an average price of ~$30,397 per bitcoin. $MSTRhttps://t.co/lcMeULcGQk
— Michael Saylor⚡️ (@saylor) December 28, 2022
It is now 132,500 BTC which is carefully kept by the company, acquired at an average price of 30,397 dollars. With the explosion in the price of Bitcoin, MicroStrategy never stopped buying, and unlike Tesla (which sold everything in July) or other institutional investors, it never sold. In August 2022, we remember that the company bought 301 new BTC in this way, when it cost more than 23,000 dollars. It is by far the largest company holding BTC.
From February to May 2022, the company was paying over $190 million to acquire 4,167 BTC. Back in September and November 2021, the pace was even more sustained with more than 419 and 414 million dollars invested respectively, for 8,957 then 7,002 BTC purchased. The most incredible transaction dates back to earlier, in November 2020, when Bitcoin was worth less than $15,000 and MicroStrategy bought 21,454 for “barely” $250 million.
A sign of purchase?
There is no evidence that Bitcoin is on its way out of the crypto-winter. News of the MicroStrategy purchase gave investors a little hope, but the 0.5% rise within minutes was largely corrected an hour later. The cryptocurrency remains down more than 65% since the start of the year. So do we really have to hope for a rebound? Growth opportunities for 2023 are very unclear.
In its calendar, the biggest event to come for Bitcoin projects us to 2024, with the arrival of a new halving of tokens. It is a system of burn artificial which makes it possible to regulate the quantity of tokens available to users and thus to increase their value. Since 2013, the three halvings carried out have all had the effect of increasing the price of Bitcoin.
The fact remains that the value of the cryptocurrency also depends greatly on the macroeconomic situation and that despite its qualities as a safe haven for some, Bitcoin could still suffer from the current environment of uncertainty and inflation.