Crypto news: MicroStrategy buys another 1,045 Bitcoin for a total of $29.3 million

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Important crypto news for Bitcoin: the American company MicroStrategy, which provides business intelligence, has purchased another 1,045 BTC for a total of $29.3 million.

The news is also reported on Watcher.Guru’s official Twitter account, which reads:

News: MicroStrategy’s crypto purchases of Bitcoin

As anticipated, it appears that in recent hours MicroStrategy has purchased another 1,045 Bitcoin worth $29.3 million. In addition, the company also reports that it now holds more than 138,955 BTC acquired at a total cost of more than $4.1 billion.

It is important to note what this means, which is that the average purchase price from August 2020 to date is about $29,800 per Bitcoin, not much higher than the current market value.

The company’s strategy seems simple: accumulate Bitcoin. They have continued to buy even when the price was significantly higher, at the cost of losing out.

It seems that MicroStrategy wants to become a Bitcoin vault of sorts, especially now that there are doubts about whether central banks can control inflation by bringing it back to 2%.

To summarize, it is easy to imagine that MicroStrategy, and its founder Michael Saylor, see Bitcoin primarily as a hedge against the inflation of the fiat currency money supply.

MicroStrategy invests in Bitcoin and repays its loans

Recently, MicroStrategy also announced that it has repaid a $205 million loan early from Silvergate Bank, one of the most crypto-friendly banks.

The decision to repay the debt early was made following Silvergate’s decision to liquidate and close its doors. As a result, MicroStrategy paid $161 million to pay off the debt in full.

All this while the company, in the fourth quarter of 2022, posted a net loss of $249.7 million, compared to a loss of $90 million in the same period of the previous year.

In short, a less-than-stellar economic situation, yet Michael Saylor continues to bet on Bitcoin, it seems without question regarding the most prestigious crypto of all.

Finally, MicroStrategy said it has sold about $340 million worth of shares as part of a previously announced stock sale agreement. The proceeds of the sale, along with some cash reserves, were used to repay the Silvergate loan.

So, in essence, the company got rid of debt to dive further into the cryptocurrency world. This is yet another demonstration of how the world of Bitcoin and the blockchain industry is becoming increasingly central to the global economic landscape.

MicroStrategy and the latest $150 million purchase

In addition to the recent purchase, MicroStrategy announced on 28 March that it had purchased another $150 million in Bitcoin. This was a bold move that had already brought the total of its cryptocurrency portfolio to a value of over $4 billion.

As we know, MicroStrategy is betting big on Bitcoin, and has been for a number of years already. In fact, the company bought as many as 6,455 Bitcoin between 16 February and 23 March, at an average price of $23.238 per Bitcoin.

All of its purchases were later reported in an official document filed with the SEC.

Moreover, looking at the charts, one can see that in recent weeks Bitcoin has seen its price increase from €18,988 to over €26,000. Moreover, in recent days, it has been sailing around the €25,922 resistance.