MicroStrategy has continuously bought Bitcoin dips since the beginning of this year, January 2021. Recently, MicroStrategy has added 1,434 Bitcoins to its holdings. The coin holdings are worth $82.4 million, increasing MicroStrategy’s holdings to 122,478 BTC. The business intelligence firm made this purchase between 28 November and 8 December, increasing its Bitcoin holdings to over 2.2 billion US dollars.
The CEO, Michael Saylor, took to Twitter to share the news. The firm purchased the December Bitcoin dip when it was $57, 477. The company is determined to HODL the crypto coin in support of cryptocurrency. According to Michael Saylor, Bitcoin is the solution, and inflation is the problem.
Michael Saylor’s firm continues to purchase Billions of Bitcoins. The last major purchase before this one was in August 2020, worth 250 million US Dollars. MicroStrategy uses cash at hand and senior convertible notes in private offerings to institutional buyers. Buying the dips is a smart move for the firm, and it promises to buy more coins continually.
Reasons Microstrategy Buys More Bitcoin.
Bitcoin is a highly volatile asset, and some might wonder why MicroStrategy keeps buying the cryptocurrency coin, and Michael Saylor endorses people to start or keep doing so. Michael Saylor was an early investor of the dot.com bubble when undergoing a global economic transition.
Investing in the early periods of the era made Michael Saylor very rich. However, Michael Saylor made massive losses and was nearing bankruptcy just when Bitcoin came in in 2008 and helped Michael Saylor stabilize his firm. Michael Saylor even got capital to re-start the business after paying off debts.
Early investment during a global economic transition is critical. Michael Saylor knows that everybody is early to Bitcoin, and anyone who gets into it early will be a Billionaire in the next economic cycle. Bitcoin is highly volatile, but it is also a form of passive incoming. Buying and staking the coins earns a holder extra income. Bitcoin is also a form of long-term investment.
Michael Saylor buys the crypto coin to support the crypto community and encourage holding during bear markets. Many people panic and cash out during bear markets. However, MicroStrategy buying the dips helps to reduce the Fear Index.
The firm also creates cryptocurrency awareness and acceptance, and the buying enables people to look into Bitcoin as a means of long-term investment.
Bitcoin Tokenomics: An $80K Possibility?
When writing this article, as per Coingecko, Bitcoin sits at $48 027.76. The coin has a 24-hour trading volume of $27,191,371,877 and a market cap of $907,554,817,371. The coin has a circulating supply of 18,896,462 and a total supply of 21,000,000. The price is down -4.8% within the last 24 hours.
Many cryptocurrency traders wonder whether the coin will reach the predicted $98k mark. It is difficult to make a price prediction of the coin now, especially this week that the coin surged back to a $48,000 price mark.
However, the crypto world is unpredictable, and the coin might pump, hitting and surpassing the $80k target this December.