Microstrategy buys 7,002 more Bitcoins as surge continues
Microstrategy, one of the largest companies that have been accumulating bitcoin for quite some time now, has now purchased an additional 7,002 bitcoins as the company continues to believe that the price of bitcoins would surge.
The important point to note here is the fact that the average price of this purchase was approx. 59,187 per bitcoin which means that the company believes that the price of bitcoin still has someplace to move higher in the coming months.
Strong Believer in Crypto
This purchase was announced by its Founder and CEO, Michael Saylor who has been a strong supporter of bitcoin and its speculative value for quite some time now. This is the reason why the company has been buying bitcoins at regular periods which has not only helped the company build its balance book but has also helped the crypto industry overall as well as it helps to sustain the market price and also shows that bitcoin can be held in the balance books of companies as a store of value.
Michael also announced that as of 29th November, the company owns approximately 121,044 bitcoins which was acquired for an approx value of $3.57 billion with an average price of $29,534 per bitcoin which means that the company has got into the market quite early and hence sitting on a large profit and the company can take some more risks at even this high price for more bitcoins. All around the world, we are seeing that more institutions are looking to convert their balances into bitcoin and other cryptos in the hope that the prices would continue to go up and they would be able to maintain their healthy balance books.
Due Diligence Required
Any investor needs to do their due diligence and while MicroStrategy seems to have done its bit very well, it may not be the case for all investors and so the investors need to be careful. What it does show though, is the fact that the interest in bitcoins and their speculative value has not decreased even at these price levels and it could push the prices even higher as more and more investors FOMO into the market. The fact that the company has chosen to do so at a time when the crypto industry is facing some pressure from the various regulators around the world also helps to bolster the confidence in the market for the traders and investors.