MicroStrategy buys the dip, acquires $10M in Bitcoin

Business intelligence firm MicroStrategy has scooped up another $10 million worth of Bitcoin (BTC), signaling the company’s relentless conviction in the digital asset amid the latest price collapse. 

The cash amount earned MicroStrategy 229 BTC at an average price of $43,663, the company confirmed Tuesday in a Form 8-K filing with the United States Securities and Exchange Commission. The acquisition came just five days after the business intelligence firm purchased 271 BTC for an average price of $55,387.

CEO Michael Saylor, an outspoken supporter of Bitcoin, also disclosed the purchase on Twitter.

MicroStrategy has purchased an additional 229 bitcoins for $10.0 million in cash at an average price of ~$43,663 per #bitcoin. As of 5/18/2021, we #hodl ~92,079 bitcoins acquired for ~$2.251 billion at an average price of ~24,450 per bitcoin. $MSTRhttps://t.co/fU6LN4WbKI

— Michael Saylor (@michael_saylor) May 18, 2021

MicroStrategy has been accumulating BTC since last summer, even going as far as raising debt to finance additional purchases. The company now has 92,079 BTC on its books, which is equivalent to $2.251 billion at the time of publication.

In terms of corporate whales, no other publicly traded company comes close to matching MicroStrategy’s BTC play. The company owns 0.438% of Bitcoin’s total circulating supply, according to the latest industry figures.

The price of Bitcoin has corrected nearly 23% over the past seven days, bringing its value back to around $43,000. The leading digital currency has been under pressure from a confluence of negative headlines and technical indicators suggesting that it may have hit a local top of $64,000 last month.

Despite the recent volatility, institutions have upped their BTC purchases over the past 30 days. Data from Bitcoin Treasuries shows that institutions have accumulated 215,000 BTC over the period, highlighting a growing conviction from the so-called "smart money" class. As Cointelegraph recently reported, the recent outflows of BTC on Coinbase also suggest that investors are willing to hold the digital asset for longer periods.