Microstrategy spent $1.1 billion to acquire 10,107 Bitcoin between January 21 and January 26. This purchase brings its total Bitcoin purchase in January to 34,814 BTC.
In his X post, Michael Saylor announced that the purchase cost an average of $105,596 per Bitcoin. This brings the total Bitcoin stockpile to 471,107 BTC, with a valuation of $30.4 billion.
To finance this recent acquisition, Microstrategy issued and sold 2,765,157 shares, which generated $1.1 billion, which was then invested in the BTC purchase.
The company has a sale agreement that allows it to issue and sell its shares for this investment. According to the agreement, $4 billion remains to be sold.
Microstrategy’s aggressive Bitcoin acquisition shows its unwavering faith in Bitcoin as the future of money.
Is Microstrategy Buying At The Right Time?
Microstrategy and some crypto analysts clearly hold different opinions on how and when to buy.
In response to Saylors’s X announcement, Peter Schiff pointed out Microstrategy’s average buying price. Peter expressed that the company’s BTC position will lose money over time.
Peter continues, “The average price of their BTC holding keeps rising as the BTC average price keeps declining.” He fears there will be a visible debt soon from their acquisitions.
While others criticize Michael Saylors’ buying strategy, others encourage him. In a defense of Saylor’s X post, one account had this to say:
“He’s getting as much as he can before other companies, US States, Sovereign Wealth Funds, and Nation States try to put it on the balance sheet.”
It is probably too late for criticisms to derail Microstrategy at this point. Their 471,107 BTC owns over 2% of Bitcoin’s 21 million supply.
READ MORE: Crypto Market Events – Week in Focus (Jan 26- Feb 1)
