Bitcoin: Tech company buys $400 million in crypto as price dramatically recovers

MicroStrategy’s cryptocurrency holdings have increased in value by nearly $3.5bn thanks to BTC price rally

Andrew Griffin,Anthony Cuthbertson
Monday 29 November 2021 14:19
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Wall Street Connected: MicroStrategy

Tech company MicroStrategy has bought more than $400 million of bitcoin as it continues to invest in the cryptocurrency.

MicroStrategy is a software company that sells data analytics tools and other business intelligence tools.

But recently it has become primarily famous for its chief executive Michael Saylor and his commitment to investing the company’s holdings into bitcoin.

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After the latest purchase, it owns some $7 billion of the cryptocurrency, making it the largest corporate holder of the cryptocurrency ahead of Tesla.

MicroStrategy bought the bitcoins at an average price of $59,187, roughly $10,000 lower than the all-time high it reached earlier this month.

In total, the firm holds 121,044 bitcoins, acquired at an average price of $29,534, meaning its crypto investment has grown by roughly $3.4 billion as a result of bitcoin’s 2021 price rally.

It is the latest major purchase of bitcoin that MicroStrategy has made following a sudden drop in its price, with several market commentators claiming that the firm is adopting a “buy the dip” strategy when it comes to acquiring BTC.

Other prominent figures within the crypto space also announced significant bitcoin purchases following the most recent market downturn, including El Salvador President Nayib Bukele.

“El Salvador just bought the dip,” President Bukele tweeted on Friday. “100 extra coins acquired with a discount.”

Alex Mashinsky, CEO of crypto rewards firm Celsius Network, made an even bigger investment, revealing on Monday: “I bought almost $10m worth of BTC and ETH at the current levels to add to my positions. We may see a retest of $53k for BTC and $4k for ETH but these should be short term bottoms with us going back to $70k from here.”

Crypto market analysts remain divided over the longer-term trajectory of bitcoin, with recent price prediction forecasts for 2022 varying from $8,000 (CryptoWhale) to $100,000+ (PlanB).

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