MicroStrategy Acquires 6455 BTC Worth $150 Million
MicroStrategy, one of the largest Bitcoin (BTC) holders in the industry, has acquired an additional 6,455 BTC for approximately $150 million. The company’s founder and chief, Michael Saylor, made the announcement on Twitter, revealing that the purchase was made at an average price of $23,238 per coin, which is approximately 16.89% less than BTC’s current market price.
MicroStrategy repaid its $205M Silvergate loan at a 22% discount. As of 3/23/23, $MSTR acquired an additional ~6,455 bitcoins for ~$150M at an average of ~$23,238 per #bitcoin & held ~138,955 BTC acquired for ~$4.14B at an average of ~$29,817 per bitcoin. https://t.co/ALp9VLkTpt
— Michael Saylor⚡️ (@saylor) March 27, 2023
Collateralized Loan, Latest Purchase
MicroStrategy’s current BTC holdings stand at 138,955 BTC, worth a whopping $4.14 billion. The average cost of each BTC on its total holdings is around $29,817, which is 6.64% more than the current market value. Saylor also revealed that MicroStrategy has repaid its $205 million BTC-collateralized loan to Silvergate at a 22% discount. MicroStrategy and Silvergate engaged in a Prepayment, Waiver, and Payoff to Credit and Security Agreement on March 24, 2023. Additionally, MicroStrategy voluntarily paid Silvergate $161.0 million (the “Payoff Amount”) in full fulfillment of the Loan and all other Credit Agreement obligations.
MicroStrategy’s decisions have often led to movement in BTC’s price, and Saylor is one of the most vocal BTC maximalists, believing that only BTC can cure the world of its financial woes.
Struggling to Break Resistance
However, BTC is still facing resistance at $28,263, with support at $27,119, and is currently trading at $27,960, up by 0.4% in the last 24 hours. The 4-hour chart pattern seems to suggest that the original cryptocurrency may move towards consolidation, but a break away from the symmetrical triangle could lead to more volatility.
If bulls take control, BTC could breach its current resistance and face fresh resistance at around $30k, with $28k forming the new support. Nevertheless, BTC is still down by a whopping 59.48% from its all-time high of $69,044, attained in November 2021.
MicroStrategy’s acquisition of BTC comes at a time when the cryptocurrency market has been experiencing volatility, and it remains to be seen how this purchase will affect BTC’s price and the wider market.