Cryptocurrency

Saylor in-depth: $555 million Bitcoin fuel-buying strategy makes a comeback

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The strategy formerly known as MicroStrategy has purchased 6,556 bitcoins for a $555.8 million acquisition. The company acquired Bitcoin between April 14 and April 20, with an average of $84,785 per coin. The latest move brings the company’s total Bitcoin to 538,200 BTC.

The company now owns over $36 billion in Bitcoin

According to the company’s report, the strategy has paid about $36.47 billion in purchases of Bitcoin reserves, an average of $67,766 per coin. The company remains the largest publicly owned company with Bitcoin, leading competitors like Mara Holdings.

This is the second consecutive week of strategy to buy Bitcoin. Two weeks ago, the company acquired nearly 3,460 BTC for more than $280 million. The company has also released 12% Bitcoin returns since the beginning of the year.

Ssource: Strategy

Strategic plan to raise $20 billion for additional purchases

The company shows no sign of its Bitcoin buying strategy. The strategic plan reportedly raised more than $20 billion from raising funds from selling stocks to future Bitcoin purchases. Even with Bitcoin’s relatively stable performance in recent months, this aggressive purchase remains.

Strategy is not the only one who adopts a Bitcoin investment strategy. Other institutional buyers do the same. Metaplanet just acquired 330 BTC for more than $28 million, increasing its stake to 4,855 bitcoins, worth nearly $500 million. Japanese retail company ANAP also entered the game for $70 million in buying Bitcoin.

Stock prices soar after announcing purchases

Amid the company’s stocks rose, the strategy’s new Bitcoin purchase was announced. Starting Friday’s closing price, MSTR’s stock rose nearly 3% to $325 to $317 in extended trading.

As of today, the market cap of cryptocurrencies stood at $2.71 trillion. Chart: TradingView

This share performance seems to be related to recent changes in Bitcoin prices. As we said, cryptocurrencies have soared to $87,600. Observers point out that the high positive correlation between MSTR stock and Bitcoin price is understandable given the strategy’s huge exposure to digital currencies.

Some analysts remain alert to the latest price increase in Bitcoin. Crypto analyst Kevin Capital warned that Bitcoin must increase by more than $89,000 to verify the true uptrend. Before that, he advised market participants to remain vigilant.

If Bitcoin keeps rising over the next few weeks, stocks in strategy may do the same. Michael Saylor, the company’s executive chairman and co-founder, has pointed out in the past that MicroStrategy has released higher returns than other big assets since the implementation of the Bitcoin strategy.

Continuous institutional investments in Bitcoin by companies such as Strategy show that despite uncertainty surrounding long-term price stability and regulatory issues, the mainstream acceptance of cryptocurrencies as an effective asset class has increased.

Featured images from stars, charts from TradingView

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