MicroStrategy Buys 2,530 Bitcoin Amid Crypto Market Pullback – Will BTC Recover?

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With Bitcoin (BTC) dipping back towards the $90,000 mark following a nearly 9% drop in the past week, institutional investors and corporations are utilizing this dip as a chance to boost their Bitcoin holdings. MicroStrategy, a leading business intelligence firm, is among these entities, having bought an additional 2,530 BTC during the current market slump.

MicroStrategy Buys The Bitcoin Dip

Unfazed by the dip in the cryptocurrency market, MicroStrategy has continued to amass Bitcoin for ten straight weeks. As announced by CEO Michael Saylor, the company purchased another 2,530 Bitcoins at a cost of $243 million, with an average price of approximately $95,972 per coin, taking into account fees and other charges.

With this latest acquisition, MicroStrategy now owns more than 450,000 Bitcoins in total, which they’ve bought for a grand total of $28.2 billion, with each Bitcoin costing around $62,691 on average. Additionally, Michael Saylor shared that MicroStrategy has garnered a Year-to-Date (YTD) Bitcoin return of 0.32%.

For beginners, Bitcoin Earnings Rate (BTC Yield) refers to a measure that evaluates the method employed in acquiring Bitcoins. Specifically in MicroStrategy’s case, the company funded its Bitcoin acquisition by offering more shares of its common stock.

From January 1st through January 12th, MicroStrategy offloaded about 710,245 shares, generating roughly $243 million. This money was used for buying Bitcoin, which in turn boosted the company’s Bitcoin holdings to a record-breaking peak (all-time high).

As a researcher, I’ve observed that our recent strategic acquisition hasn’t significantly influenced MicroStrategy’s stock price positively so far. At this moment, MicroStrategy (MSTR) is being traded at $312.16, representing a 4.8% decrease for the day. However, it’s important to note that MSTR has experienced a substantial growth of 540% over the past year, mirroring Bitcoin’s price trend in 2024. This correlation between our company and Bitcoin’s price trajectory is quite striking.

In addition to MicroStrategy, Semler Scientific, a medical healthcare manufacturing company, recently acquired 237 Bitcoins for approximately $23.3 million. This purchase was made between December 16 and January 10, with the average price per Bitcoin being around $98,267.

Currently, Semler Scientific possesses approximately 2,321 Bitcoins, which were obtained for a combined value of $191.9 million, with each Bitcoin costing around $82,687 on average. The company funded its recent Bitcoin acquisition through the funds generated from its at-the-market (ATM) offering and its own cash flow from operations.

Back in May 2024, Semler Scientific initiated its Bitcoin acquisition process by purchasing 581 Bitcoins for its assets. Later, in December 2024, they further boosted their digital currency holdings with an additional 303 Bitcoins.

Will BTC Recover From Price Slump?

Following a new all-time high of $108,135 on December 17, Bitcoin has been fluctuating within the price band of $90,000 to $100,000. The recent cryptocurrency market downturn has caused Bitcoin to dip towards the lower limit of this range. If the current support level at $90,000 fails to prevent a fall, Bitcoin may slide down to approximately $84,000.

The actions of MicroStrategy and Semler Scientific buying Bitcoin show corporate trust in the cryptocurrency, but crypto investor Arthur Hayes warned there might be more price drops before the inauguration of the U.S. President-elect, Donald Trump, on January 20th.

Despite some analysts expressing skepticism, others remain hopeful due to Elliott Wave analysis predictions. This analysis hints that following the present downtrend, Bitcoin could potentially reach a staggering $210,000. Currently, Bitcoin is being traded at $92,277, representing a 3% decrease within the past day.

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2025-01-14 11:41