MicroStrategy Buys Another 6,455 Bitcoin ($BTC), Pays Off Silvergate Loan
Nasdaq-listed business intelligence firm MicroStrategy has bought an additional 6,455 Bitcoin ($BTC) at an average price of $23,238 per coin over the past five weeks, paying off the remaining principal on its $205 million loan from Silvergate Bank with BTC .
The loan was raised last year, and as part of its satisfaction, the business intelligence firm received back 34,619 BTC held as collateral. The company’s recently added BTC cost it around $150 million and signals that it is still accumulating its flagship cryptocurrency.
The acquisition of more Bitcoin brings MicroStrategy’s total holdings up to 138,955 comes, purchased at an average price of $29,817 each, and worth approximately $3.88 billion at the time of writing.
On social media, MicroStrategy founder Michael Saylor described that the loan with Silvergate was repaid at a 22% discount, and that the firm’s BTC holdings were acquired for a total of $4.14 billion.
MicroStrategy also disclosed that it raised $339.4 million through the sale of its shares this year, which was used to repay the loan from Silvergate Bank. The company’s decision to use BTC as collateral for the loan was widely seen as proof of its belief in the long-term potential of the digital asset.
As CryptoGlobe reported, a leading cryptocurrency analyst who has gained a large following on social media after accurately calling out in January 2018 bitcoin’s 84% decline over that year, from over $19,000 to just over $3,000 in a year-long bear market, has suggested through two charts showing that there is potential for Bitcoin to reach $150,000 by 2025.
Peter Brandt, who is one of the world’s most respected classical chartists, has shared charts on the microblogging platform Twitter with his nearly 700,000 followers that suggested that $BTC is making an inverse head and shoulders pattern, which could push $BTC to $30,000 in the second half of the quarter this year.
An inverted head and shoulders pattern is the opposite of the standard head and shoulders pattern. It is used to predict the reversal of downtrends. The pattern is identified when the price of a security reaches a low, rises, falls again below the previous low, then rises again, and finally falls a third time, but not as low as the second low.
After the third bottom, the price moves upwards towards the resistance level at the top of the previous bottoms, according to Investopedia.
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