Bitcoin: MicroStrategy Buys 6455 BTC for $150 Million

Paigambar Mohan Raj
Source: Business Insider

Bitcoin (BTC) heavyweight MicroStrategy has acquired 6455 BTC for around $150 million. The firm’s founder and chief, Micheal Saylor announced the development on Twitter. Saylor also said that MicroStrategy has repaid its $205 million BTC-collateralized loan to Silvergate. The loan was repaid at a 22% discount.

According to Saylor’s tweet, the BTC was purchased at an average price of $23,238 per coin. The cost of each coin is approximately 16.89% less than BTC’s current market price. MicroStrategy currently holds 138,955 BTC, worth a whopping $4.14 billion. The average cost of each BTC on its total holdings is around $29,817, which is 6.64% more than the current market value.

MicroStrategy and Silvergate engaged in a Prepayment, Waiver, and Payoff to Credit and Security Agreement on March 24, 2023. Additionally, MicroStrategy voluntarily paid Silvergate $161.0 million (the “Payoff Amount”) in full fulfillment of the Loan and all other Credit Agreement obligations.

Will Bitcoin rebound after MicroStrategy’s purchase?

Microstrategy is one of the biggest Bitcoin (BTC) holders in the industry. Moreover, Saylor is one of the most vocal BTC maximalists. Moreover, he believed only BTC can cure the world of its financial woes. MicreStrategy’s decisions often lead to some movement in BTC’s price.

BTC is still hovering below the $28k mark. BTC is currently facing resistance at $28,263, with support at $27,119. The 4-hour chart pattern seems to point towards the original cryptocurrency moving towards consolidation. However, a break away from the symmetrical triangle might welcome more volatility for the asset.

Source: BTC/USDT Chart by Trading View

If bulls are able to take control, we may see BTC breach its current resistance, and face fresh resistance at around $30k, with $28k forming the new support. At press time, Bitcoin (BTC) was trading at $27,960, up by 0.4% in the last 24 hours. However, BTC is still down by a whopping 59.48% from its all-time high of $69,044, attained in November 2021.