MicroStrategy sees “opportunities” in Bitcoin’s present low prices amid high volatility in the crypto market. The business intelligence and software company now has nearly 130,000 Bitcoin worth around $2.61 billion. It purchased an additional 480 Bitcoin for about $10 million – with an average price of $20,817 per Bitcoin. MicroStrategy is believed to have the largest stash of Bitcoin of any public company, Tesla is second with around $862 million worth of digital assets.
Madeline Hume, a senior research analyst at Morningstar, says MicroStrategy’s latest purchases shows that the firm is comfortable purchasing a range of price levels. However, she said the latest purchase doesn’t free Saylor from the hot seat as Bitcoin’s price continues to trend flat. Hume highlighted that MicroStrategy remains nearly $1.4 billion underwater on its Bitcoin reserves.
Edward Moya, a senior market analyst for OANDA, says MicroStrategy is all-in on Bitcoin and seeks whatever capital it can to buy the dip. He explained that the rapid appreciation before 2021’s record high and latest demise shows the company has failed to capitalize on the way up. Moya believes investors looking for crypto exposure should not consider MicroStrategy a good vehicle for that as they are reckless with their portfolio management.
Fawad Razaqzada, a financial market analyst at Stone X, says MicroStrategy’s purchase shows that Bitcoin’s downturn is nearing an end and recovery is on the way. But he admitted that it’s a bit like a gamble. It should be noted that crypto prices haven’t stabilized and new plunges are around the corner. Razaqzada hopes it doesn’t scare investors who hold MicroStrategy’s stocks.
MicroStrategy’s stock has been down about 68% since the beginning of the year.