On Tuesday, 2 Feb, MicroStrategy CEO Michael Saylor said the business intelligence company bought 295 more bitcoin for over $10 million.
Buy the Dip
This adds to the firm’s bulging stockpile of the top-cryptocurrency worth over $1 billion. Announcing the purchase, Saylor said in a tweet that buying bitcoin is part of his formula for success. The company’s recent moves certainly reflect this formula. In December, the company issued bonds to raise $650 million to purchase bitcoin.
This effectively doubled its investment in the top-cryptocurrency after the company spent most of the year accumulating. MicroStrategy is a business analytics company that provides “software solutions and expert services that empower every individual with actionable intelligence.”
A Bullish Signal
Bitcoin has been trading in the $30,000 – $35,000 range for much of last month. This follows a tumultuous two weeks which saw a flailing video games distributor GameStop (GME) stock pump via a co-ordinated Reddit group.
The promotion led to it more than tripling in value in just a few weeks, causing opportunistic mainstream short-sellers to accept heavy losses. Once the hype cooled off, the effects spilled over into crypto’s resident meme-coin, dogecoin (DOGE), seeing a 1000% spike in a matter of days.
Many in the cryptocurrency community suggested these events took attention away from bitcoin, resulting in its consolidating price. However, then the world’s richest man, Tesla’s Elon Musk, suddenly changed his Twitter bio to “#bitcoin,” which triggered a bitcoin rally, temporarily signaling the bulls.
MicroStrategy’s latest purchase only compounds this signal, with bitcoin currently trading at the higher end of its week-long range.
The Institutional Wave Continues
MicroStategy isn’t the only institutional investor purchasing cryptocurrencies of late. Well-known crypto-investor, Grayscale Investments is also making waves in the industry, with reports of new DeFi-based funds in the works.
Moreover, the company’s latest Assets Under Management (AUM) report suggests it owns over 4.1% of all bitcoins in circulation. If both of these institutions continue purchasing bitcoin at their current levels, they alone might trigger the leading crypto’s next all-time high.