New MicroStrategy Investment Means Bitcoin’s (BTC) Rally Resumption

New MicroStrategy Investment Means Bitcoin's (BTC) Rally Resumption

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The analytic software developer once again bought bitcoin, now for $240 million. Players see this as evidence that the market has stopped falling.

MicroStrategy is the first publicly traded company to invest in bitcoin. It first bought 21,454 BTC in August 2020 for $250 million, at about $11,650. Bitcoin followed a horizontal trend that time, and by September 2020, it even dropped slightly within 10%. However, this did not frighten the management of MicroStrategy, the second purchase was made at local lows, 16 796 BTC for $175 million at a price of about $10,420. In December, 2,574 BTC were bought for $50 million.

By that time, Bitcoin had almost doubled and was worth about $19.5K. This enabled the company to raise third-party funds to invest in bitcoin on December 9, 2020, by placing convertible senior notes шт the amount of $650 million. Michael Saylor, CEO of MicroStrategy, announced after that that the company is a hodler of about 90K BTC. And bitcoin soared.

Players have noticed that Michael Sailor buy BTC at the lows when the bitcoin correction had ended. MicroStrategy develops analytical software. It is easy to assume that a top manager of a company uses his professional expertise to predict the movement of a leading cryptocurrency asset. Players started to focus on MicroStrategy’s activities in the market, although some analysts call this a “self-fulfilling prophecy” since it is the big purchases of BTC that cause the price of bitcoin to rise.

In February 2021, MicroStrategy repeated the placement of its zero-interest convertible senior notes maturing in 2027. It raised $1.05 billion and purchased 19,452 BTC at an average price of $52,765. The purchase did not look profitable, as bitcoin dropped to $46K later. And the previous local low was at the end of January at $30K. However, all this did not damage the reputation of MicroStrategy and Michael Saylor, since already in mid-March, bitcoin was traded at the level of $57K- $61K.

By that time, Sailor had firmly taken the position of a bitcoin stakeholder, and his company regularly invested all available funds in BTC. After bitcoin hit its all-time high on April 14 at $64.8K, MicroStrategy CFO Phong Le said addressing to tech companies:

– Corporate treasurers have an imperative to hold bitcoin if they hail from the technology industry. If you’re not putting any of [your corporate treasury] into bitcoin, I don’t think you’re doing your fiduciary responsibility.

After the market crash in May, MicroStrategy again bought bitcoin for more than $2 billion, of which $500 million was raised again through the placement of convertible senior bonds, and $1 billion through an additional issue of its own shares. The cryptocurrency was acquired in a falling market, and from July 20, BTC began to rise again. 16% Bitcoin crash down 16% on September 7, some analysts attribute the fact to crypto adoption in El Salvador. Now the new info that MicroStrategy has bought an additional 5,050 BTC could push markets up after a week of correction.