TL;DR Breakdown
- MicroStrategy invests in Bitcoin for the second time
- MicroStrategy now ranks as the 5th largest Bitcoin hodler
- Bitcoin, a better investment option than gold
Business intelligent firm, MicroStrategy now ranks as the 5th largest Bitcoin hodler after it invested an additional $650 million in the largest cryptocurrency by market capitalization.
MicroStrategy announced it purchased the additional $650 million during the price dip. It has previously disclosed its intention to buy more Bitcoin earlier this month.
Michael Saylor, MicroStrategy Chief Executive officer said that the acquisition reaffirms the firm’s belief that Bitcoin is a dependable store of value.
Climbing to become the 5th largest Bitcoin hodler, the firm now owns 70,470 BTC bought at an average price per Bitcoin of $15,964. The firm surpassed the United States Bitcoin holding as the word power owns 69,420 BTC.
Why Bitcoin is good investment for MicroStrategy
Following the business intelligent firm’s initial investment in Bitcoin, it has raked several million back in profit. Bitcoin continues to remain one of the most prospective investment as confirmed by Christopher Wood, Global Head of Equity Strategy at Jefferies, a US-based investment bank.
He said he’s favoring exposure for Bitcoin instead of gold. Similarly, strategists at JP Morgan Bank confirmed that Bitcoin is now overbought. They explain that BTC flows into the Grayscale Bitcoin Trust (GBT) “are too big to allow any position unwinding by momentum traders to create sustained negative price dynamics.
When MicroStrategy Bitcoin journey started
The American firm first purchased BTC in August buying 21,000 BTC for 250 million. They stated then that Bitcoin was being adopted as a reserve currency and hedge against the U.S. dollars.
Afterward, they purchased $425 million more BTC in September. Michael Saylor the firm CEO also urged Tesla boss, Elon Musk to use BTC to replace the U.S. dollar as Tesla’s primary reserve currency.
Saylor has become a Bitcoin bull after his firm profited from their first round of Bitcoin investment.
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