NewsletterBreaking: Michael Saylor’s MicroStrategy Buys 2,500 Bitcoins
Bitcoin maximalist Michael Saylor on Wednesday announced that MicroStrategy has acquired 2,500 Bitcoins. As of December 27, MicroStrategy holds nearly 132,500 bitcoin acquired for over $4 billion at an average price of $30,397 per Bitcoin, as per an SEC filing.
Bitcoin purchases by MicroStrategy have always been a bullish signal for the BTC price. However, Bitcoin price fails to show any significant move after the recent report.
MicroStrategy Increases Bitcoin Holdings Amid Dip
During the period between November 1 and December 21, MicroStrategy through its wholly-owned subsidiary MacroStrategy purchased 2,395 Bitcoins for about $42.8 million.
Moreover, MacroStrategy sold almost 704 bitcoins for cash proceeds of $11.8 million, at an average price of almost $16,776 on December 22 for tax benefits. This was the first time MicroStrategy sold its Bitcoin. However, MacroStrategy acquired almost 810 bitcoins for almost $13.6 million in cash two days later on December 24.
Therefore, 132,500 Bitcoin held by MicroStrategy and its subsidiaries as of December 27, 2022 accounts for nearly $4.03 billion. This makes the average purchase price as $30,397 per Bitcoin.
In September, MicroStrategy reported its total Bitcoin holdings of 130,000 BTC, after buying around 301 Bitcoins between August 2 to September 19, 2022. Also, the company sold $500 million of Class A MSTR shares through investment banks Cowen & Co. and BTIG LLC. The proceeds were used for “general corporate purposes, including the acquisition of bitcoin.”
Also Read: Binance Suspends Terra Classic (LUNC) Burn Mechanism
Can Bitcoin Price Rally Above $17,000 Now?
Bitcoin price is currently trading at $16,700, down 1% in the last 24 hours. The 24-hour low and high for Bitcoin are $16,608 and $16,839, respectively.
After the MicroStrategy news reached Crypto Twitter, Bitcoin price failed to show any significant move. However, people remain hopeful about BTC price reclaiming at least the $16.8K level.
Bitcoin was trading sideways near the $16.8K level since mid-November. But the recent breakout below the support level in the last 24 hours caused selloffs in altcoins.
Crypto analysts believe Bitcoin price monthly close above $16,900-$17,000 is crucial for a bullish rally in 2023.
Also Read: Is It $10K Or $100K For Bitcoin Price In 2023?
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