MicroStrategy buys the dip, acquiring 660 Bitcoins for $25M

MicroStrategy buys the dip, acquiring 660 Bitcoins for $25M
According to official data, MicroStrategy bought significantly less BTC in January than in previous months. On 31.01.2021 they bought 125,051 BTC on dips.

MicroStrategy is a major investor in BTC. It bought 660 BTC for about $25 million between Dec 30, 2021 and Jan 31, 2022, according to a Feb 1 filing with the United States Securities and Exchange Commission (SEC). The report reads that MicroStrategy’s average purchase price was $37,865 per BTC. On 31/01/2021, the company held $3.78 billion in BTC at an average purchase price of about $30,200 per unit. 

The SEC recently dismissed MicroStrategy’s Bitcoin accounting practices, which caused the company’s stock to plummet in mid-January. The latest report came shortly after that event.

The SEC objected to the way MicroStrategy reports its BTC purchases, claiming that the company uses a non-GAAP method to calculate figures for its BTC purchases, specifically “excluding stock-based compensation expense and impairment charges and gains on the sale of intangible assets.”

MicroStrategy’s most recent purchases are far from staggering in comparison. In December 2021, MicroStrategy announced two major BTC purchases. Between 29.11.2021 and 09.12.2021 it bought 1,434 BTC for an average price of $57.477 and then between 09.12.2021 and 29.12.2021 it bought 1,914 BTC for an average price of $49.229 apiece. On the other hand, between 01/10/2021 and 29/11/2021, the company bought 7002 BTC for an average price of $59.187 apiece.

Other major investors in BTC, including the El Salvador government, also continued their investments in Bitcoin, notwithstanding the January market declines in January. On 21 January, El Salvador’s president, Nayib Bukele, announced that they had bought 410 BTC for $15 million, at an average price of around $36,585 per unit.

What can be noticed during crypto market declines is panicked investors, but only inexperienced ones. One of the mantras of the market says “Buy low, sell high” and as you can see from the major investors, this is a practice that is well known and followed. If you want to learn more about the crypto market then check out our trading course. And if you are looking for daily market information or the opinion of an experienced trader then go for the Golden Keys product.

03/02/2022 Mr.Advice TEAM


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