Amid the recent crypto market rally, MicroStrategy, a business intelligence software company known in the crypto community for its Bitcoin (BTC) accumulation, has announced its first Bitcoin purchase of the year.
Along with its latest Bitcoin acquisition, the software company also announced in a Form 8-K presentation with the USA Securities and Exchange Commission (SEC) that it has paid off its outstanding loan with the troubled US bank, Silvergate.
Microstrategy resumes BTC buying spree after loan payoff
Microstrategy began its Bitcoin build in 2020 and since then the company has been known for large purchases of Bitcoin.
Although the company went on a three-month hiatus from its significant losses in 2022, it has now resumed its BTC purchases, according to its latest announcement.
Related Reading: The US Government Has More Bitcoin Than MicroStrategy, Tesla Combined
MicroStrategy co-founder and former CEO Michael Saylor revealed on Twitter mail on March 27 that the company acquired an additional 6,455 BTC worth approximately $150 million at an average price of $23,238.
This latest purchase has now expanded the company’s capacity Bitcoin holdings by nearly 10%, bringing his total Bitcoin holdings to 138,955 BTC, bought for $4.1 billion at an average of $29,817 per coin.
Notably, last year, amid the global market downtrend, Microstrategy initiated a $205 million loan with Silvergate that the company used to purchase a large amount of Bitcoin.
Although the company posted significant losses at the time, its losses have since narrowed due to BTC’s rally since January. According to Micheal Saylor, the Silvergate loan was paid off at a 22% discount.
The former CEO tweeted:
MicroStrategy repaid its $205 million Silvergate loan at a 22% discount. As of 3/23/23, $MSTR purchased an additional ~6,455 bitcoins for ~$150 million at an average of ~$23,238 per #bitcoin and held ~138,955 BTC purchased for ~$4.14 billion at an average of ~$29,817 per bitcoin .
Bitcoin Price Action Over the Last Week
following his rapid appreciation in value since the beginning of the month due to the US banking crisis, Bitcoin has experienced a notable retracement in the last 7 days by almost 3%. BTC has fallen from a high of $28,783 on March 22 to trade below $28,000 as of today.
This nosedive comes after Federal Reserve Chairman Jerome Powell announced another interest rate hike. Over the past week, the asset has seen a downward trend in its market capitalization and trading volume, indicating a slowdown in your buying pressure.
Related Reading: Bitcoin and Crypto Face These Key Dates in the Next Week
At the time of writing, Bitcoin currently has a 24-hour trading volume of $13.9 billion, down from the amount seen earlier this month of more than $50 billion during its rally.
Meanwhile, for the past 24 hours, Bitcoin is currently in a downtrend along with the rest of the crypto market. The asset is down almost 4% at the time of writing with a trading price of $26,858.
Unsplash Featured Image, TradingView Chart
