In a testament to its unwavering confidence in bitcoin (btc), MicroStrategy, one of the largest bitcoin holdings, has once again expanded your cryptocurrency portfolio.
The company’s former CEO, Michael Saylor, Announced the acquisition of an additional 16,130 btc, valued at approximately $593 million. This strategic move comes as bitcoin enters an accumulation phase above the $37,000 mark.
MicroStrategy joins the bitcoin stash
As announced, MicroStrategy Last purchase was realized at an average price of $36,700 per bitcoin. With this acquisition, the company’s total bitcoin holdings now stand at an impressive 174,530 btc.
Throughout 2023 and prior years, MicroStrategy has consistently demonstrated its commitment to btc, accumulating a substantial amount of the cryptocurrency.
The total cost of MicroStrategy’s bitcoin investments exceeds $5.2 billion, with a average purchase price of $30,252 per bitcoin. This significant investment reflects the company’s long-term bullish outlook on bitcoin‘s potential as a store of value and inflation hedge.
As reported According to NewsBTC, the company has seen substantial gains thanks to the recent bullish trend in the overall cryptocurrency market and bitcoin‘s impressive price rise. With btc experiencing a 36% surge since October, Microstrategy has racked up over $1 billion in unrealized gains.
In particular, bitcoin‘s positive performance has directly impacted Microstrategy shares, which trade under the ticker name MSTR. The stock has witnessed a significant rise in value, closely related to btc‘s current bullish momentum.
On November 9, when bitcoin hit its previous yearly high of $38,000, MSTR’s stock price also skyrocketed to an all-time high (ATH) of $533 per share. This milestone once again demonstrates Microstrategy’s successful investment strategy over the past three years.
Michael TaylorA prominent bitcoin advocate, he has been a strong supporter of the cryptocurrency, emphasizing its superior qualities compared to traditional fiat currencies.
MicroStrategy’s continued accumulation of bitcoin reinforces Saylor’s conviction in its long-term prospects and serves as a testament to the company’s belief in the digital asset’s store-of-value properties.
Short-term pullback potential looms
In a recent market update According to IT tech, author of CryptoQuant, short-term insights into the bitcoin derivatives market shed light on the current bullish momentum and the possibility of a minor pullback.
According to the analysis, the current upward momentum in the bitcoin market largely depends on perpetual motion. The rise in bitcoin price has been a key driving force contributing to the bullish sentiment.
However, the crypto Volatility Divergence (CVD) Spot indicator suggests a relatively flat movement in spot demand. This indicates that a significant increase in immediate spot demand may not support the current price increase.
In the absence of strong spot demand materializing in the market, IT tech suggests a possible minor pullback in the near term.
This potential pullback could be attributed to several factors, including profit-taking by traders or a lack of sustained buying pressure from spot investors.
The analysis also highlights the possibility of bitcoin liquidations in the near term, which could indicate further bullish movement to liquidate late short positions.
This suggests that those who have taken short positions in bitcoin may exert additional buying pressure. As these shorts are liquidated, the uptrend could continue.
As of the latest update, bitcoin (btc) is trading at $37,600, showing a slight decrease of 0.5% in the last 24 hours. However, it has maintained a 1.5% gain over the past seven days, indicating a period of consolidation for the cryptocurrency.
Featured image from Shutterstock, chart from TradingView.com
