Bitcoin’s Biggest Corporate Backer Announces $94 Million Investment Amid $250 Billion Crypto Market Crash

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MicroStrategy, the data analytics firm run by billionaire Michael Saylor, announced its latest major investment in bitcoin Thursday morning, and once again doubled down on its impressive commitment to the world’s largest cryptocurrency as the market recovers from the flaw of driving prices lower. Less than 30% below the all-time high set last month.

key facts

In a regulatory filing Thursday, Virginia-based MicroStrategy, which owns more bitcoin than any other company in the world, revealed that it bought approximately 1,914 bitcoin for about $94.2 million in cash, or $49,229 per coin, between December 9 and December 29.

The company says it now owns approximately 124,391 bitcoins, purchased for around $3.8 billion, or at an average price of $30,159 per coin.

MicroStrategy’s latest investment comes as bitcoin’s price struggles near a two-month low after selling nearly 10% on Tuesday sent prices down nearly 17% from levels at the end of last month, putting bitcoin on the right track for its monthly performance. The worst since May.

Fueling price volatility, more than $6 billion of options contracts are set to expire on Friday – effectively forcing investors to either double up on risky bets or unwind their positions, according to analysts at UK cryptocurrency broker Global Block.

MicroStrategy helped fund the purchase using proceeds from a stock offering previously disclosed in June that has so far raised nearly $1 billion from investors, including a batch of sales this month for about $565.78 per share.

Shares of MicroStrategy, which has also used newly issued debt to buy bitcoin during the pandemic, jumped about 1.4% Thursday morning and are up about 33% this year despite dropping more than 7% since the crypto sale on Tuesday.

Huge number

$5.9 billion. This is the value of MicroStrategy’s bitcoin holdings on Thursday given prices of around $47,400 per coin.

main background

With its growing investment in bitcoin – rivaled only by 42,000 Tesla coins – MicroStrategy has made a stunning turnaround since the dotcom bubble slashed its stock price nearly two decades ago. Shares are up nearly 285% since the company first started buying bitcoin in August 2020. However, prices have also been incredibly sensitive to the huge fluctuations in the emerging cryptocurrency market. The stock has collapsed more than 55% from its 21-year high in February, when recently surged bitcoin prices tumbled after Tesla CEO Elon Musk said on Twitter that its prices looked “a little bit high”.

Amazing fact

After reaching a value of nearly $3 trillion on November 10, the crypto market now has a total market value of around $2.2 trillion.

in-depth reading

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