The latest buy-in from MicroStrategy and Square shows that large companies and financial institutions will not be afraid to buy a dip.
The companies bought the dip
At least two large companies have seized the opportunity to buy more bitcoiny during Tuesday’s correction. Buying even during the downturn suggests that companies investing in BTC may not be afraid of falling and will not be intimidated by any volatility. It follows that they are probably buying on a long-term HODL.
MicroStrategy
MicroStrategy, a publicly listed news firm that was one of the first to hold BTC in reserve, acquired additional 19 452 BTC. She spent on their acquisition 1.026 billion dollars. This means that the company now owns 90 531 BTC.
Overall, to purchase BTC to reserve the company MicroStrategy utratila 2.171 billion dollars and paid an average price 23,985 $ for coins. As a result, its bitcoin portfolio is currently in profit, which is currently hovering around 2 billion dollars.
A substantial part of bitcoin positions comes from capital, which MicroStrategy obtained by issuing securities, ie in principle by a loan. CEO Michael Saylor added:
“We will continue our strategy of acquiring bitcoins with excess cash and may from time to time, under market conditions, issue debt or equity securities in capital raising transactions in order to use the proceeds to purchase additional bitcoins.”
Square
Also Square, a cryptofriendly payment company run by Twitter CEO Jack Dorsey, announced on Tuesday that it was buying Bitcoin. The purchase of the company was considered “modest” 170 million dollars. In the main cryptocurrency is now bound about 5 % total assets of the company.
Square in addition, it revealed that by January 2021, more than a million of its customers had purchased Bitcoin. Interestingly, that Square in October bought 4 709 BTC for great $ 50 million. In comparison, the latest investment pays three times more money for “just” 3 318 BTC.
Conclusion
Companies that buy Bitcoin still seem to see no reason to stop their purchases. On the other hand, even the current sharp drop in prices that is common at Bitcoin did not deter them from buying another $ 1,200 million. At the current price of about $ 47,700, Bitcoin has been up about $ 18,000 since the beginning of the year alone.
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