MicroStrategy Acquires More Bitcoin (BTC) Amid Crypto Bear Market

MicroStrategy Acquires More Bitcoin (BTC) Amid Crypto Bear Market

It seems as though some crypto-driven companies are leveraging the current crypto bear market to increase their holdings or expand their teams.

MicroStrategy, an American-based business intelligence organization, has recently announced that it purchased an additional 480 Bitcoin (BTC) for around $20.817 between May and June, spending a total of $10M on the digital asset.

The announcement issued on June 29th comes after Bitcoin (BTC) plummeted over 71% from an all-time high and currently sits at $19,425. According to the Crypto Fear & Greed Index, a measure built with the sole purpose of measuring the greed and fear of investors in the digital assets market, the bears reigning over the crypto ecosystem accrued “extreme fear” amidst the players in the cryptocurrency world.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

What is a Smart Contract? (Explained with Animations)

What is a Smart Contract? (Explained with Animations) What is a Smart Contract? (Explained with Animations)

Earlier this year, Phong Lee, CTO of MicroStrategy, supposedly noted that the company would face a margin if the price of Bitcoin (BTC) drops to $21K. He previously stated:

“We took out the loan at a 25% loan-to-value, the margin call occurs [at] 50% loan-to-value. So, essentially, Bitcoin needs to cut in half, or around $21,000, before we'd have a margin call.”

However, the CEO of MicroStrategy Michael Saylor recently mentioned that such rumors are nothing to worry about as the firm isn’t planning to ditch any of its Bitcoin (BTC) holdings, but is rather focused on holding onto them despite the harsh market conditions. Saylor believes that the price of BTC will eventually restore.

MicroStrategy is a technology-based corporation that provides mobile software, cloud, and business intelligence (BI) services. The latest purchase brings the company’s holdings to 129,699 Bitcoin (BTC), while the total value of its holdings is around $3.98B. As stated in a press release, MicroStrategy’s Q1 2022 revenues were estimated at $119.3M, while the gross profit was $93.6M.

It seems like a number of organizations are also seeing the ongoing crypto downturn as a perfect opportunity to welcome new innovative talents to their teams. For instance, Binance, the biggest crypto exchange in the world, announced the search for 2000 new employees. FTX and Kraken are also on the same path of expanding their staff numbers.

In other news, back in June, data retrieved from Google Trends revealed that people are searching for “Bitcoin dead” now more than ever, with the keyword hitting a new all-time record.

Gyth L. - Crypto Analyst

by Gyth L. - Crypto Analyst, BitDegree


Loading...