MicroStrategy Acquires 10,107 BTC for $1.1 Billion Investment

MicroStrategy executive chairman Michael Saylor announced the acquisition of 10,107 BTC for approximately $1.1 billion, bringing the firm's total holdings to 471,107 BTC. Key points include:

  • Recent purchase price per Bitcoin was $105,596.
  • Total investment value in Bitcoin now stands at around $30.4 billion.
  • Average purchase price for the holdings is $64,511, resulting in a profit of $16.4 billion (55% gain).
  • Year-to-date yield on Bitcoin is 2.90%.

Market Response

MicroStrategy's stock dropped by 5.5% in pre-market trading, reaching $334, amid broader market declines. Despite no returns over the past three months, MSTR shares have gained 109% over six months and 600% over one year, fluctuating between $300-$400.

Bitcoin Price Decline

Bitcoin's price has decreased by 5.46%, falling below $100K. Investors are debating whether to buy on dips or wait. Former BitMEX CEO Arthur Hayes anticipates a potential drop to $70K before a rally towards $250K. Crypto analyst Mister Crypto noted that downside liquidity has been absorbed, suggesting a potential upward movement in the market.