MicroStrategy said on Wednesday that it has added 480 bitcoin (BTC) worth around $10 million to its balance sheet.
Michael Saylor, the company’s founder and chief executive officer, revealed on Twitter that his company purchased the additional bitcoin for an average price of $20,817. The purchases were made between May 3 and June 28 while the market for cryptocurrencies saw a decline.
This is the company’s first purchase statement since April when it purchased 4,167 bitcoin valued at around $190,5 million. According to an 8-K filing with the SEC, MicroStrategy and its subsidiaries now own roughly 129,699 bitcoins with a total purchase price of around $3.98 billion.
In May, Saylor talked with The Block about the market decline. He highlighted that the short-term volatility of bitcoin was mostly immaterial once consumers understood the cryptocurrency’s foundations.
MicroStrategy’s bitcoin wager was in the negative at the moment, as the cryptocurrency fell below its average buy price (at the time, $30,700). According to Wednesday’s statement, the average purchase price of the company’s assets is currently $30,664 per bitcoin, including fees and expenditures.
Throughout the market turmoil, continuous rumours circulated that MicroStrategy might be subject to a margin call. This was earlier disputed by Saylor in remarks to The Block, as was the notion that the company would sell its assets.
According to statistics from Coinbase, Bitcoin’s price was fluctuating by about $20,000 at the time of writing. Since the beginning of May, the top cryptocurrency by market capitalization has been progressively dropping for a variety of reasons.
Since the beginning of the year, a deteriorating macroeconomic picture owing to increasing inflation fears has set the tone for trade, but the decrease in crypto prices has increased since the beginning of May.
The Terra blockchain ecosystem failed on May 12 when its algorithmic stablecoin, terraUSD, lost its dollar peg. Since that time, the cryptocurrency market has been volatile, with lending platforms Celsius and BlockFi experiencing substantial challenges, and crypto hedge firm Three Arrows Capital having its holdings liquidated by several lenders.
Despite this, MicroStrategy has maintained to purchase bitcoin, suggesting that the company’s optimistic view is steadfast.
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