MicroStrategy Buys $15 Million Worth Of Bitcoin Following The Elon Musk-induced Dip

Publicly traded business intelligence and software company, MicroStrategy, has increased its bitcoin holdings, following the asset’s recent dip.

The company stated that it has purchased a total of 271 bitcoins worth $15 million in cash, at an average purchase price of $55,387 per unit, including transaction fees and other expenses.

MicroStrategy is edging ever closer to having 100,000 bitcoins in its portfolio. Currently, the company has a total of 91,850 bitcoins which it had purchased for a whopping sum of $2.241 billion, at an average purchase price of $24,403 per unit.

MicroStrategy’s recent bitcoin purchase comes shortly after the asset’s price plummeted following Elon Musk’s bombshell.

The Elon Musk-induced Dip

The crypto community was thrown into a state of pandemonium when the CEO of the electric car company Tesla, Elon Musk, announced that his company will no longer accept bitcoin payments due to environmental impact risks.

Fear, uncertainty, and doubt crept into the hearts of several traders, causing more than 38,000 long traders to liquidate their positions.

Bitcoin’s price fell by over 15% within a few hours after the tweet went viral, dropping from $54,819 to $45,700, resulting in a decrease in bitcoin’s market cap.

Bitcoin is currently trading a little above $49,000 with its market cap sitting above $930 billion.

No Going Back For MicroStrategy

Ever since MicroStrategy made its first bitcoin purchase and added the crypto asset as its primary reserve, it has shown no signs of going back.

Rather than trimming its bitcoin position, MicroStrategy has gone ahead to acquire more bitcoins, with the conviction that the digital currency is a better store of value than any fiat currency.

In its first-quarter earnings report, the company revealed that its $2.2 billion bitcoin investment has witnessed an increase of over 220%.

Its CEO, Michael Saylor stated,

“We will continue to acquire and hold additional bitcoin as we seek to create additional value for shareholders.”

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This article is Originally posted on CoinCentral.com
Author: Obike Favour

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