A renowned software firm, MicroStrategy, which’s been making headlines for its aggressive Bitcoin purchases, has made another $10 Mln purchase after earlier Thursday’s market uncertainty.
In line with an official announcement by CEO Michael Saylor, the firm purchased another 205 BTC at a mean price of $48,888 USD, spending almost $10 Mln in cash to try to do so. This puts the firm’s total Bitcoin holdings at 91,064 BTC worth $4.3 Bln. The entire cost basis of the BTC is $2,196 Bln with a mean price of $24,119 USD.
MicroStrategy’s latest Bitcoin purchase is one among its many “symbolic” purchases where the firm puts a couple of more millions in BTC after every dip. While the software company began putting its existing assets into Bitcoin [BTC] earlier in last year, back when Bitcoin traded around $10k, its latest purchases have yet to interrupt even.
The latest major purchase, funded by a bond offering of $900 Mln, was done at a mean price of $52.7k per BTC. Bitcoin’s price has wavered ever since amid a worsening outlook for risk assets on Wall Street.
Thursday’s purchase coincided with a period of heightened tension on markets, as Fed chair Jerome Powell signaled that bankers don’t think current conditions require additional intervention. Bond yields are on a gentle and powerful rise within the past weeks, which traditionally signals recovery from a recession and heightened inflation expectations. This could normally reflect well on stocks and risk assets, but the narrative behind 2020’s unstoppable rise strongly relied on low bond yields and continuous Fed intervention as justification for heightened valuations.
Wall Street tension seems to be having some effect on Bitcoin [BTC], though MicroStrategy seems keen to continue on its previous path. Thursday’s purchase is essentially symbolic, but the more important indicator is that MicroStrategy didn’t sell, despite its stock price has fallen 50% since February highs.