Billionaire Michael Saylor Buys Bitcoin Dip
Michael Saylor is a die-hard bitcoin evangelist.
For those who follow the billionaire on the social network Twitter, it is impossible to know that bitcoin (BTC), the most popular cryptocurrency, is going through a turbulent period marked by a drop in value of more than 72% since the whole of November. holiday.
“There are an incredible number of people around the world who need #bitcoin,” Saylor, who is now executive chairman of MicroStrategy (MSTR) the software company he founded, published on September 19.
On the same day, BTC prices fell below the symbolic threshold of $19,000. If the cryptocurrency is currently trading around $19,085.34, according to data firm CoinGecko, prices are down 72.4% from the all-time high of $69,044.77 set on 10. November.
Long-term Bitcoin believer
In light of these numbers, it seems that Saylor appears to be living in an alternate reality, as many comments on his tweets usually point out.
“It just feels like you’re in therapy every time I read these tweets – trying to convince yourself that it’s OK to keep going every time you know you’ve made a terrible mistake,” one user commented.
But the billionaire seems to believe in the decline of BTC. He is thus betting on the future, ignoring the present and even the near-term future because the Federal Reserve’s interest rate hike to fight inflation, which is at a 40-year high, could send the economy into recession, which economists warn. This fear is pushing investors to liquidate risky assets such as cryptocurrencies, including bitcoin.
MicroStrategy just acquired more bitcoins, Saylor just announced.
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“MicroStrategy has purchased an additional 301 bitcoins for ~$6.0M at an average price of ~$19,851 per #bitcoin,” the crypto enthusiast posted on September 20th. $3.98 billion at an average price of ~$30,639 per bitcoin.”
The new bitcoins were purchased between Aug. 2 and Sept. 19 at an average price of about $19,851 per bitcoin, including fees and other expenses, the company confirmed in a regulatory filing.
It added that it used excess cash to make the purchase.
Further depreciation?
It appears that MicroStrategy has already seen the value of its new bitcoins drop considering the price at which the cryptocurrency is currently selling. If this trend continues, this will increase the impairment charges associated with the portfolio of digital assets that the firm should record for the current quarter.
The company said it took a $2 billion BTC-related write-down in the second quarter, which weighed on its results. In fact, MicroStrategy posted a net loss of $1.06 billion in the second quarter.
MicroStrategy shares affected by bitcoin price movements are down 62.1% since January.
But nothing seems to be deterring the firm, which recently announced plans to issue and sell up to $500 million in stock.
“We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin,” the company said.
