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MicroStrategy increases its investment and buys the dip

Just a few days after announcing the purchase of 271 bitcoins, the firm disclosed it has bought another 229 BTC
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Just a few days after announcing the purchase of 271 bitcoins, MicroStrategy stated it has bought another 229 BTC.

MicroStrategy was the first publicly listed company that began investments in bitcoin in 2020. Many more firms followed and implemented bitcoin in their balance sheets. The company didn’t stop and made another purchase of 295 BTC in February. The last investment that was made by the company dates less than two weeks ago when another 253 BTC were acquired. This amount was worth $15 million on the day they were bought.

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According to an SEC filing published today, MicroStrategy acquired the digital currency at $43,663 per token. The total value of the purchase amounted to 10 million dollars. MicroStrategy Inc. is following the company’s policy of regularly acquiring bitcoin. This is the firm’s way of protecting its treasury reserves from the inflation that is surging due to the pandemic.

“On May 18, 2021, MicroStrategy Incorporated (the “Company”) announced that it had purchased approximately 229 bitcoins for $10.0 million in cash, at an average price of approximately $43,663 per bitcoin, inclusive of fees and expenses. As of May 18, 2021, the Company holds approximately 92,079 bitcoins that were acquired at an aggregate purchase price of $2.251 billion and an average purchase price of approximately $24,450 per bitcoin, inclusive of fees and expenses.”

SEC filing

The news was also confirmed via Twitter by Michael Taylor.

michael saylor microstrategy

MicroStrategy also declared last month that starting from April 11th non-employee directors of the company board will no longer get their fees compensated in fiat currency. From now on, these members will receive the payment for their services in bitcoin, and their fees won’t change in value.

Do you know what “buying the dip” means?

Buying the dip is based on one of the most important investment concepts: “buy low, sell high.” The approach is just a little different and more targeted. There are two basic principles for buying the dip: a sharp drop in prices and a strong sign that they’ll increase again in the future.

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