Just-In: MicroStrategy Buys Additional $10 Million Worth of Bitcoin in Cash

MicroStrategy has bought $10 million worth of additional Bitcoin today at $48,888 per piece. The software giant has been at the forefront of institutional Bitcoin purchase, having already bought over $2.196 billion in total Bitcoin purchase. The institutional giant now holds a total of 91,064 bitcoin in its treasury.

MicroStrategy was among the first fortune 500 companies to see the potential in Bitcoin as the treasury hedging asset amid the diminishing value of the US Dollar in the international trade market. The software giant started purchasing Bitcoin back in August 2020 when the top cryptocurrency was trading around $13,000 and since then it hasn’t stopped.

Apart from direct cash purchases from its treasury, the software solution provider has also raised nearly $1.65 billion in debt security by offering the company’s convertible notes. The firm first sold nearly $650 million worth of debt security in December last year and only last month it raised another billion-dollar through the issuance of convertible notes. Despite many experts warning against buying Bitcoin via credit, MicroStrategy CEO Michael Saylor has revealed that the company intends to raise more capital via the same method for buying Bitcoin.

Institutions Still Bullish on Bitcoin

Bitcoin price has failed to hold $50,000 despite seeing several bullish rallies above $52,000. After recording a new all-time high of $58,343 in the second week of February, the price recorded a sharp correction and since then the top cryptocurrency has remained under $50,000 for most of the last three weeks. However, institutions seem to be still buying heavily as Coinbase outflows continued throughout this consolidation phase.

The on-chain metrics for Bitcoin combined with the fact that Grayscale Premium is at its lowest in history, many believe the top cryptocurrency’s longer consolidation phase would give it better steam for the next leg of bull run, with most of the analysts shifting their short-term Bitcoin price target to $75K.