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MicroStrategy is approaching 100,000 bitcoins but its shares on Wall Street fall 50%

Little by little MicroStrategy has become synonymous with institutional investments in bitcoin (BTC). Your appetite for investing in the first cryptocurrency does not diminish, but grows more and more. This Friday, March 5, the US company acquired another 205 bitcoins for 10 million dollars in cash.

Despite the good news for enthusiasts of the bitcoiner ecosystem, in the Nasdaq market on Wall Street the Company shares show a downward trend. The price has fallen more than 50% in just under a month , going from about 1,300 dollars per share, to 620 dollars at the close of this March 5.

MicroStrategy’s share price is still four times higher than its market price before being a company with investments in bitcoin. Prior to the announcement of its first purchase, in August of last year, the stock was priced at $ 145.

empresa cotizaciones bolsa btc
The price of MicroStrategy shares has dropped significantly in the last month. Source: Yahoo Finance.

The decline in the price of the shares could be interpreted as little receptivity by investors about the purchases of BTC during the falls of its price, for example.

More bitcoin for MicroStrategy, more “hodl”

The new injection of capital into the cryptocurrency, created by Satoshi Nakamoto, was disclosed by Michael Saylor, CEO and co-founder of the company. Through his Twitter account, the executive offered details about the transaction and what it represents for the MicroStrategy treasury.

“MicroStrategy has purchased an additional 205 bitcoins for $ 10 million in cash at a average price of $ 48,888 per bitcoin. For 3/5/2021 we have in ‘hodl’ (saved) 91,064 bitcoins acquired for 2,196 million dollars at an average price of 24,119 per bitcoin », explained Saylor on the social network.

The The company also made the investment official on its website and sent a statement about the transaction to the United States Securities and Exchange Commission (SEC) . MicroStrategy submitted an 8-K form to the regulatory body to notify the operation.

Investments in bitcoin with own and financed funds

Since August 2020 the company You are investing in BTC with frequent monthly or weekly purchases. In fact, last week the company made its largest investment in bitcoin with 1,000 million dollars to acquire a total of 19,452 bitcoins, according to CriptoNoticias reported.

The corporation has said that its investments in bitcoin they will continue in the future, that is, they are not temporary or temporary movements due to the global financial and monetary situation . These are acquisitions that place a valuation on bitcoin as the main crypto asset in the market.

Saylor himself recently indicated that MicroStrategy will buy more bitcoin with the excess cash that the company captures. In addition, the manager assured that occasionally the company will issue “debt or securities for fundraising in order to use the proceeds to buy additional bitcoin.”

According to figures from the Bitcoin Treasuries service, MicroStrategy’s total investment in bitcoin is currently valued at $ 4.339 billion. That is, the company has earned more than 2,143 million dollars if the current price of the cryptocurrency is considered. According to the CriptoNoticias price index, 1 bitcoin is currently worth $ 47,500.

In total, institutional investors such as mutual funds and private companies, for example, have allocated about 46,000 million dollars in cryptocurrency . Some of these announcements have attracted media attention, such as Tesla.

The electric vehicle manufacturer recently bought $ 1.5 billion in BTC, representing some 48,000 bitcoins in January. Other entities or funds that have also bet on bitcoin are: Square, Grayscale or Ruffer Investment.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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