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The company “Strategy” (known as “MicroStrategy”) continues to buy Bitcoin without paying much attention to the price of the currency.
The company recently purchased 1,031 Bitcoins worth $76.6 million at an average price of $74,326 per Bitcoin. It could have been bought at a better time and price, especially considering that Bitcoin fell during the sub-$70,000 period, and the company certainly has experts and analysts on its side. However, judging from its buying history, it does not seem to care about the entry price, but buys based on what it has, regardless of the price, and interprets the matter as an absolute belief in the long-term value of Bitcoin.
Institutional capital scrambles for Bitcoin:
After the latest purchase, the company’s Bitcoin holdings reached 762,099 Bitcoins, with a total cost of $57.69 billion. The company’s Bitcoin holdings are currently worth an estimated $54 billion, with a paper loss estimated at 7%.
As for the source of funding for the latest deal, the Bitcoin purchase was financed through the sale of common stock, whereas previously it relied on preferred stock (STRC) to finance large transactions.
“Strategy” is not the only institutional entity close to this crazy trend of Bitcoin, “BlackRock” and its IBIT fund (Bitcoin ETF) own about 785,300 Bitcoins.
U.S. ETFs hold a total of approximately 1.3 million Bitcoins, accounting for 6.1% of the total Bitcoin supply.
This means that the role of institutions in driving the price of Bitcoin is greater than ever before and continues to grow, which of course means that the movement of Bitcoin prices and their behavior is gradually changing from individuals driving the price.
Also read:
Bitcoin price falls below $70,000, fear still controls investors’ souls
