Billionaire Michael Saylor invests nearly $2 billion during crypto market downturn.
In a significant move, MicroStrategy, led by CEO Michael Saylor, has purchased 22,048 Bitcoin for approximately $1.9 billion, bringing the company's total Bitcoin holdings to 528,185. This latest acquisition, which cost around $4.3 billion, now makes MicroStrategy one of the largest Bitcoin holders, with a value nearly as much as Blackrock's and more than half as much as the estimated holdings of the mysterious figure, Satoshi Nakamoto.
The average price at which these Bitcoins were purchased is $67,458, a slight increase from the average price of $87,000 for previous purchases. However, the price of Bitcoin did not show a significant increase in response to this significant purchase. This lack of response could be interpreted as a sign of a downbeat market, or perhaps a reflection of the current macroeconomic situation in the US.
Despite this, Saylor remains optimistic. He predicts that the US will aggressively work to become the global crypto hub and believes that other countries will have no choice but to accept Bitcoin as a global capital unit. He also claims that Bitcoin has reached "escape velocity."
Interestingly, Saylor's latest purchase serves as an example of the current market's lack of responsiveness to positive economic events. If Bitcoin continues to fall, even until later years, it could potentially pose a problem for Saylor, despite the fact that MicroStrategy's Bitcoin holdings are still worth about $8 billion or 23% more than the current purchase price.
On the other hand, BlackRock, a leading global investment management corporation, has a different approach. While MicroStrategy continues to aggressively purchase Bitcoin as a primary reserve asset, BlackRock's current position is focused more on institutional engagement with Ethereum and tokenization solutions on Ethereum rather than direct large-scale Bitcoin accumulation. This highlights the growing role of Ethereum within the crypto market, while MicroStrategy remains one of the most prominent Bitcoin holders with ongoing large Bitcoin acquisitions.
It's worth noting that the first repayments of the billion-dollar bonds used to buy Bitcoin won't be due until the fall of 2027. This gives MicroStrategy ample time to continue its Bitcoin accumulation strategy, even in the face of a potentially unresponsive market.
The current price behavior of Bitcoin may be influenced by a bear market price, which is unresponsive to positive impulses. The lack of response in the price of Bitcoin could be a sign of a downbeat market, or it could be due to the current macroeconomic situation in the US. Regardless, MicroStrategy continues to bet big on Bitcoin, with CEO Michael Saylor leading the charge.
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