MicroStrategy buys another US$ 500 million in Bitcoin

US company MicroStrategy announced this Monday morning, June 21, that it has spent US$ 489 million in cash to acquire approximately 13,005 bitcoins. The purchase was made when the cryptocurrency was at an average price of $37,617 per unit, including fees and expenses.

With the new acquisition, the company surpasses the mark of 100,000 bitcoins in custody, totalling approximately 105,085 BTC in cash. The estimate is that the cryptocurrency was acquired for an average price of $26,000.

MicroStrategy: Placing Confidence in the Bitcoin Cryptocurrency

Bitcoin is by far the most traded cryptocurrency on the planet and has a market capitalization of over $1 trillion. the emergence of the other decentralized cryptocurrencies that circulate today.

Since last year, Bitcoin has attracted more and more interest, fans and investors around the world. The currency has been recording successive record highs and reaching extraordinary values. In April 2021, the quotation of 1 BTC reached almost $65,000 dollars. Less than a week later, the currency plummeted 11% in a single day and hit $55,000.

MicroStrategy, a maker of business analytics and intelligence software and one of the largest publicly traded independent business intelligence and analytics companies best known for its massive investments in bitcoin, championed by Michael Saylor, its founder and one of the biggest cryptocurrency evangelists.

To raise the necessary funds for the purchase, the company made an offer of $500 million in debt bonds to its investors, maturing in 2028. These bonds generate an annual yield of 6.1% and were purchased by qualified institutional investors on a basis US securities laws.

With the purchase earlier this week, the company’s bitcoin exceeds $3.3 billion at the current CoinMarketCap currency quote. Most of this amount is in the custody of MacroStrategy LLC, a new subsidiary of the company.

While Michael Saylor believes in Bitcoin’s potential and has been investing in it, other famous names in the market, such as Peter Schiff, share another point of view about cryptocurrency.

On his Twitter profile, the author, US entrepreneur and financial commentator shared about the currency’s fall and the purchase made by MicroStrategy:

This Tuesday, June 22, Peter Schiff made a publication that is generating a debate about cryptocurrencies, in particular, Bitcoin and Tether: “Not only is #Tether the 3rd largest #cryptocurrency by market cap, but its market cap is more than 50% greater than the 4th largest crypto. If Tether’s market cap grows by another 40%, and #Ether just surrenders its 2021 gains (the #Bitcoin is poised to do) it will take 2nd place!”

Bitcoin: Steady down at the beginning of the week

Since the purchase was made at the beginning of the week, however, the BTC’s fall has intensified even more, its price remains at around $32,900, down by approximately 3.5 %.

One of the factors causing this negative performance of the currency is an even stronger repression to the sector coming from the Chinese government. On Friday, June 18, miners in Sichuan province were forced to stop their activities, causing a drop in bitcoin mining power.

And on Monday, it was the turn of the Central Bank of China to ask the country’s financial institutions to stop offering a wide range of cryptocurrency services, including account opening, transactions and settlements.

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