Michael Saylor Led MicroStrategy Buys 480 Bitcoin (BTC) Amid Low Price

CoinLoan Drops Per Day Withdrawal Limit Citing Spike in Withdrawals
  • The price of Bitcoin temporarily fell below $20,000 on Wednesday.
  • a net unrealized loss of roughly $1.4 billion is lying in the company’s BTC hoard.

Reiterating CEO Michael Saylor’s belief in Bitcoin (BTC), MicroStrategy has increased its BTC holdings, despite recent volatility. MicroStrategy stated that it had purchased an additional 480 BTC at an average price of about $20,817 in a Form 8-K filing with the United States Securities and Exchange Commission (SEC). Ten million dollars in cash were exchanged during the transaction.

Biggest Corporate Bitcoin Owner

As a result of the transaction, MicroStrategy has become the biggest corporate Bitcoin owner. There is a value of around $3.98 billion in its assets. While the market is in a state of heightened turbulence, the business intelligence organization is buying Bitcoin. The price of Bitcoin temporarily fell below $20,000 on Wednesday, more than $10,000 below the average purchase price of the corporation. Data published by Bitcoin Treasuries shows that a net unrealized loss of roughly $1.4 billion is lying in the company’s BTC hoard.

The firm’s CEO, Michael Saylor, is optimistic about Bitcoin’s long-term prospects. Earlier this month, he informed his 2.5 million Twitter followers that the company intends to “HODL through adversity” and has no intentions to sell. 

MicroStrategy made $119.3 million in sales in the first quarter. The company made $93.6 million in gross profit in the quarter. Saylor noted that the only loan that has to be collateralized for the Bitcoin they have is a $200 million one on its balance sheet, which is worth many billions of dollars. According to the CEO, the corporation has already over-collateralized by ten times in this area.

Before that, in an interview with CNBC, Saylor assured the community that the firm would not be impacted by a margin call as long as the loan-to-value number does not transcend the 50 percent mark.

Recommended For You:

Bitcoin (BTC) Price Decline Hits Miners Hard, Forcing To Liquidate Holdings

A devoted content writer having 3 years of crypto trading experience. Loves cooking and swimming. Stays up to date with the latest developments on blockchain technology.