Michael Saylor is betting more on bitcoin. Despite the recent market trepidation, MicroStrategy has added another 480 BTC to its balance sheet. This brings its total holdings to 129,699 bitcoins. This comes at a crucial time as the pioneer cryptocurrency remains 70.9% down from its lifetime high set in November 2021.
MicroStrategy Spends Another $10M On Bitcoin
MicroStrategy, the Virginia-based business analytics firm helmed by bitcoin evangelist Michael Saylor, disclosed Wednesday it had bought 480 bitcoins at an average price of $20,817 during the period from May 3 to June 28. The company allocated $10 million in cash to acquire these coins.
To date, MicroStrategy has acquired an astronomical 129,699 bitcoins at an average price of $30,664 per coin. The institutional heavyweight has spent a total of around $3.98 billion to grow its holdings.
With its current reserve, MicroStrategy is essentially the world’s largest publicly traded corporate holder of BTC. But with the latest market slump, the company is currently nursing net unrealized losses of circa $1.4 billion on its investment, based on data pulled from Bitcoin Treasuries.
Bitcoin slumping to sub-$21,000 prompted concerns that MicroStrategy was facing a possible margin call, but CEO Michael Saylor reassured investors that they had nothing to worry about. He also stressed that his company was prepared to “HODL through adversity.”
MicroStrategy made headlines in 2020 when Saylor announced a plan to accumulate bitcoin to replace the cash held on its balance sheet. Saylor was the driving force behind this bold move.
Prior to the announcement today, Saylor told his Twitter followers to “stay humble” and “stack sats”. While he has once again indicated his strong belief in bitcoin, it’s unclear whether the number one cryptocurrency can defend the $20,000 region. If it fails to hold above the psychologically important level amid the dire economic backdrop, it could ignite a more hellish meltdown.