MicroStrategy is on a Bitcoin buying spree and doesn’t seem to be stopping any time soon. On Monday, the Michael Saylor-led company announced an additional purchase of Bitcoins worth $489 million. MicroStrategy remains optimistic with Bitcoin despite the recent drops.
The Nasdaq-listed company recently completed the sale of its secured notes and used the proceeds to purchase more Bitcoin. The $500 million public offering valid till 2028 generated $489 million after all dues were excluded. The interest on the secured note amounts to 6.125 percent per annum.
Currently, MicroStrategy has gathered over 105,085 on its balance sheet. Its subsidiary MacroStrategy LLC has over 92,079 pieces of the coins in its coffers. The company began placing a hold on Bitcoin from August 2020 and has been increasing its momentum as it progressed.
On average, the purchase value of each Bitcoin under MicroStrategy is placed at $26,080 with a total value cap at $2.75 billion. The price of BTC has fluctuated over the past few days and is currently valued at a $32,000 mark.
Bitcoin Woes in Recent Times
It’s been a tough ride for Bitcoin from last week. For the first time since July, the crypto asset began a new week under $33,000. The current value has generated widespread speculations. With some analysts pointing to signs of a incoming bear market.
The latest market reactions might be linked to the expansion of the Bitcoin mining crackdown in China. The ban has recently included Sichuan as miners were compelled to suspend operations.
The indefinite ban on crypto transactions in China points to environmental concerns as majority of Chinese miners mine with coal. Several affected miners are on an Exodus as they make moves to take their mining operations to Texas.
In equal vein, the Indian government is holding back on the acceptance of cryptocurrencies and their free operation. The Asian country has linked digital assets especially Bitcoin to financial crimes and money laundering.
