MicroStrategy bought 13,005 Bitcoin (BTC) to reduce the cost of Bitcoin. The company’s CEO, Michael Saylor, tweeted on his official Twitter account that the most recent purchase was worth about $489 million, with an average bitcoin price of about $37,617.
MicroStrategy, which creates software and intelligence systems, has proven itself as a decisive in the market with its heavy Bitcoin purchases. Michael Saylor revealed that as of June 21, 2021, the company has received a total of approximately 105,085 Bitcoins at an average price of $26,080 per BTC.
MicroStrategy finds Bitcoin safe
The entire cryptocurrency industry is shaken by the Chinese bans and the price impact of Elon Musk news. While the total crypto market cap fell 3.38% to $1.35 trillion, this figure is far from the $2.7 trillion recorded months ago. MicroStrategy, on the other hand, takes advantage of bearish opportunities. The drop in prices creates a path for MicroStrategy to buy more Bitcoin, while the buyout actions are helping to shield the market from the impact of the ongoing crypto ban by the People’s Bank of China.
MicroStrategy is very experienced in allocating shareholder funds to buy Bitcoin. The company has devised a number of ways to invest in Bitcoin by raising funds. Some of these include, but are not limited to, the issuance of $2 billion in Senior Convertible Notes, as well as the divestment of shares. The company has positioned itself as a model for other institutional investors to follow.
Most corporate companies are trying to meet sustainable best practices by reducing their use of Carbon, especially with regard to energy use. Bitcoin, the most attractive digital asset for institutional investors, has proven to spend a lot of energy in the mining process. Cryptocurrency has caused many concerns, fueled by the Tesla CEO and Chinese government demanding to switch their mining operations to sustainable options.
Institutional investors seem more cautious compared to MicroStrategy, and as Tesla recently noted, investments could intensify when 50% of mining operations are done with renewable energy.