MicroStrategy resumes the (colossal) purchase of Bitcoin

It’s time to head back to stock up on bitcoins on the MicroStrategy site. The company, which specializes in publishing decision-making software, has just resumed buying the flagship cryptocurrency after a four-month hiatus following the market collapse. Rarely does the company pay so little for the token.

This Wednesday, December 28, its co-founder and executive chairman Michael J. Saylor tweeted that he had added to the treasury 2,500 BTC, acquired at a price of less than $17,000 during the day of December 27.

It is now 132,500 BTC, which is carefully kept by the company, acquired at an average price of $30,397. With Bitcoin’s price explosion, MicroStrategy never stopped buying, and unlike Tesla (who sold everything in July) or other institutional investors, never sold. In August 2022, we remember that the company bought 301 new BTC in this way, when it cost more than 23,000 dollars. It is by far the largest company with BTC.

From February to May 2022, the company paid over $190 million to acquire 4,167 BTC. Back in September and November 2021, the pace was even more sustained with more than $419 and $414 million respectively invested for 8,957 and then 7,002 BTC purchased. The most incredible transaction dates back to earlier, in November 2020, when Bitcoin was worth less than $15,000 and MicroStrategy bought 21,454 for “barely” $250 million.

A sign of buying?

There is no evidence that Bitcoin is coming out of the crypto winter. The announcement of the MicroStrategy purchase gave investors a glimmer of hope, but the 0.5% gain within minutes was largely corrected an hour later. The cryptocurrency has continued to fall by more than 65% since the start of the year. So should we really hope for a recovery? Growth opportunities for 2023 are very unclear.

In its calendar, the biggest event to come for Bitcoin projects us to 2024, with the arrival of a new halving of tokens. It is a system of burn artificial, which makes it possible to regulate the amount of tokens available to users and thus increase their value. Since 2013, the three completed halvings have all had the effect of raising the price of Bitcoin.

The fact is that the value of the cryptocurrency also depends to a large extent on the macroeconomic situation, and that despite its qualities as a safe haven for some, Bitcoin may still suffer from the current environment of uncertainty and inflation.

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