Billionaire Michael Saylor buys the 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 tumultuous period marked by a drop in value of more than 72% since its end in November . time up.
“There are so many people around the world who need #bitcoin,” says 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 $19,000 threshold. If the cryptocurrency is trading around $19,085.34 at the time of writing, prices are down 72.4% from the all-time high of $69,044.77 hit on Nov. 10, according to data firm CoinGecko.
Long-term bitcoin believer
Given these numbers, it appears that Saylor appears to be living in an alternate reality, as many comments on his tweets usually indicate.
“Every time I read these tweets, it feels like I’m in a therapy session – trying to convince myself it’s okay to keep going even though you know you’ve made a terrible mistake made,” commented one user.
But the billionaire appears to have faith in BTC’s recovery. So he’s betting on the future, ignoring the present and even the short-term future because the Federal Reserve’s rate hike to combat inflation, which is at its highest in 40 years, could plunge the economy into partial recession, economists warn. These fears are pushing investors to liquidate risky assets like cryptocurrencies, including Bitcoin.
MicroStrategy just acquired additional bitcoins, Saylor just announced.
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“MicroStrategy has bought another 301 bitcoins for ~$6.0 million at an average price of ~$19,851 per #bitcoin,” the crypto enthusiast announced Sept. 20 for $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.
Additional depreciation costs?
It appears that given the price at which the cryptocurrency is currently being sold, MicroStrategy has already seen the value of its new bitcoins drop. If this trend continues, it will increase the impairments associated with its portfolio of digital assets, which the company should register for the current quarter.
The company said it took $2 billion in BTC-related asset impairments in the second quarter, which weighed on results. In fact, MicroStrategy posted a net loss of $1.06 billion in the second quarter.
Shares of MicroStrategy, which has been affected by developments in bitcoin prices, are down 62.1% since January.
But nothing seems to be discouraging the company, which recently announced it plans to issue and sell up to $500 million worth of stock.
“We intend to use the net proceeds from this offering for general corporate purposes, including acquiring Bitcoin,” the company said.