MicroStrategy is one of the best-known companies among crypto market investors, especially Bitcoin, and is considered to be responsible for the cryptocurrency’s growth during 2021. Amid the CEO change and other concerns, the company seems to have re-confirmed that it continues bullish towards bitcoin, even buying a few million more in a downturn. According to forms filled out by the company, MicroStrategy (MSTR) has again expanded its Bitcoin reserve, even considering that for the last few months, practically the entire year of 2022, the price of the coin has not been very excited. Microstrategy revealed that it accumulated around 301 bitcoins between August 2, 2022 and September 19, 2022 and purchases were made entirely in cash. Bitcoins were bought by $6 million in all, with each coin coming out at an average price of approximately US$ 19,851.
The filing reveals that Microstrategy purchased bitcoins using cash in excess of its billing, which indicates that part of the initial budget was not used. It is worth mentioning that MSTR, including its subsidiaries, now holds around 130,000 BTCs.
The news, of course, was also announced by Michael Saylor on your Twitter.
“MicroStrategy purchased an additional 301 Bitcoins for approximately $6 million for an average price of approximately $19,851 per Bitcoin. As of 09/19/2022, there are a total of 130,000 Bitcoins, purchased for a total of $3.98 billion. Average of $30,639 per Bitcoin”
MicroStrategy has purchased an additional 301 bitcoins for ~$6.0 million at an average price of ~$19,851 per #bitcoin. As of 9/19/22 @MicroStrategy holds ~130,000 bitcoins acquired for ~$3.98 billion at an average price of ~$30,639 per bitcoin.https://t.co/5kYW98ij4I — Michael Saylor⚡️ (@saylor) September 20, 2022
Big names in the financial market criticized MicroStrategy
As you can imagine, many crypto market investors were excited by the news and some others took the opportunity to criticize the company, as is the case with Peter Schiff, well-known investor in the financial market and even more for being one of the biggest critics of Bitcoin in recent years. Schiff stated that the company lost part of its investment (compared to the average value of each Bitcoin purchased), but that at the same time, it cannot sell its reserves because it will further increase the loss.
“Basically your company has already lost about $1.5 billion (40%) on its Bitcoin bet. However, if you actually sell, Bitcoin will crash, sending realized losses even higher. MSTR’s Bitcoin adventure has been a disaster. Shareholders should sell while they can.”
Basically your company has already lost about $1.5 billion (40%) on your #Bitcoin gamble However, if you actually tried to sell, Bitcoin would crash, sending realized losses much higher. #MSTR‘s foray into Bitcoin has been a disaster. Shareholders should sell while they can. — Peter Schiff (@PeterSchiff) September 20, 2022
While last year such news from MicroStrategy would have major impacts on the Bitcoin market, the cryptocurrency remains the same as in recent weeks, continuing the already consolidated trend of sideways trading.