Listed company MicroStrategy invests a further 650 million dollars in bitcoin. In total, the company has now converted over $1 billion in cash reserves into the world’s best-known cryptocurrency. MicroStrategy paid an average of less than $16,000 (€13,132) per bitcoin.
Thousands of bitcoins
CEO Michael Saylor announced on Twitter that MicroStrategy now owns 70,470 bitcoins. At the time of writing, there are over 18.5 million bitcoins in circulation. MicroStrategy owns nearly 0.38 percent of these.
Buy the dip
The timing of the purchase is striking, or very clever. From its peak last Financial Peak weekend to its low point at 13:00, bitcoin had fallen in value by almost ten percent. It therefore seems plausible that Michael Saylor took advantage and bought the dip.
Indeed, MicroStrategy’s announcement states that the company has purchased bitcoins for an average purchase price of USD 21,925. That corresponds to the lowest price of bitcoin at 13:00 today. Cleverly played!
Billionaires try to convince each other
Bitcoin has been making an impressive run since the corona crisis. After the magic limit of USD 20 000 (EUR 16 386) was breached, it went even faster. Yesterday bitcoin reached almost $24,400 (€19,990).
That was also noticed by Tesla CEO Elon Musk. He tweeted a spicy bitcoin meme, to which Michael Saylor responded: „If you want to do your shareholders a favour of 100 billion dollars, convert the $TSLA balance from USD to BTC. Other companies on the S&P 500 would follow your example and the value will grow to a $1 trillion favour“.
Elon Musk then asked: „Are such large transactions possible?“, to which Michael Saylor replied: „Yes, they are. I have bought over $1.3 billion in BTC in recent months, and I would like to share my script with you offline – rocket scientists among themselves“.
So who knows, maybe Elon Musk will also get into bitcoin. In that case, the price will probably not really go like a rocket.