MicroStrategy, the leading corporate holder of Bitcoin, has fortified its investment in the cryptocurrency by acquiring an additional 9,245 BTC. Michael Saylor, the company’s Founder and Chairman, made the announcement, indicating that the purchase occurred between March 11 and March 18, 2024. The acquisition, which amounted to roughly $623 million, was funded through convertible notes and surplus cash flow, averaging a cost of $67,382 per Bitcoin.
MicroStrategy’s Growing Bitcoin Portfolio
The recent investment has expanded MicroStrategy’s Bitcoin holdings to a staggering total of 214,246 BTC, valued at about $7.53 billion. The company’s average spending on these assets stands at $35,160 per Bitcoin, showcasing a significant commitment to the cryptocurrency as an investment vehicle.
Bitcoin’s Price Faces Downward Pressure
Bitcoin, meanwhile, has witnessed a decline in value after peaking at an all-time high of $73,750 on March 14. Since this zenith, the prominent digital currency has experienced a 14% drop and is currently changing hands at $63,270, which is a 7.03% decrease within the past day.
Financial analysts caution about potential market instability in light of the upcoming Federal Reserve’s interest rate decision on March 20, predicting possible erratic price fluctuations. While some consider the $63,000 mark a potential floor, expecting a rebound post-consolidation, others speculate that the bottom price may dip below $60,000.
In conclusion, while MicroStrategy continues to increase its Bitcoin holdings, the market outlook remains uncertain with analysts divided on the cryptocurrency’s short-term price trajectory.