MicroStrategy Buys the Dip with Additional $623 Million Investment as Bitcoin Declines

Major Bitcoin whale MicroStrategy has topped up its Bitcoin supply with an additional $623 million worth of BTC amid the price correction. MicroStrategy’s Chairman, Michael Saylor, took to X to announce the new acquisition on March 19.

According to Saylor’s post, MicroStrategy now holds 214,246 BTC tokens worth approximately $7.5 billion.   

MicroStrategy Continues Relentless Accumulation of Bitcoin 

MicroStrategy is arguably the most active Bitcoin whale, regularly adding to its already vast BTC supply.  The asset manager’s latest purchase of BTC tokens was at an average price of $67,382 each, which is worth approximately $623 million in total. 

MicroStrategy has acquired an additional 9,245 BTC for ~$623.0M using proceeds from convertible notes & excess cash for ~$67,382 per #bitcoin. As of 3/18/24, $MSTR hodls 214,246 $BTC acquired for ~$7.53B at average price of $35,160 per bitcoin. https://t.co/oeYJGgiuy0

— Michael Saylor⚡️ (@saylor) March 19, 2024

According to Saylor, the $623 million used for the recent Bitcoin purchase was proceeds realized from convertible notes and excess cash. This purchase coincides with Bitcoin’s dip in price form after rallying to a new all-time high of $73,750. Bitcoin currently trades within the $62,000 – $63,000 price range.

Remarkably, MicroStrategy views this dip as a buy signal swiftly adding to its robust Bitcoin holdings. With the latest BTC acquisition, MicroStrategy’s total holdings now stand at 214,246 BTC, acquired for approximately $7.53 billion at an average of $35,160 per BTC token. 

Notably, the firm’s Bitcoin holdings have risen to approximately $13.5 billion, yielding an unrealized profit estimate of $5.92 billion. MicroStrategy was established as a cloud-based and mobile software services provider.

However, it started aggressively accumulating bitcoin in September 2020 with its Chairman, Michael Saylor, as a staunch BTC proponent. 

Also, all of MicroStrategy’s BTC investments have been quite profitable besides the last two purchases. The latest purchase also comes a week after MicroStrategy purchased an additional 12,000 BTC valued at $821.7 million.   

Reactions to MicroStrategy’s Purchase 

While MicroStrategy celebrates its latest purchases, some industry experts view it as a reckless move. Reacting to the development, Peter Schiff, a staunch gold supporter and BTC critic, condemned MicroStrategy’s purchase. 

According to Schiff, MicroStrategy’s “reckless leveraged buying” has not influenced the price of Bitcoin, which remains down 15% from its new all-time high recorded just five days ago.  

Yet despite your reckless leveraged buying, Bitcoin is still down 15% from its high price just five days ago. Now that you're done buying the bottom can really drop out of the market. When Bitcoin hits 20K MSTR will be down $3.25 billion. At 10K MSTR will be down $5.5 billion.

— Peter Schiff (@PeterSchiff) March 19, 2024

Schiff believes Bitcoin may decline further, and MicroStrategy will incur significant losses when it does.

When Bitcoin hits 20K, MSTR will be down $3.25 billion. At 10K, MSTR will be down $5.5 billion, Schiff noted

However, an X user, (Real) DegenXRPHolder, countered Schiff’s claims. According to the X user, Schiff already admitted he missed out on BTC years ago but wished he hadn’t. He called Schiff out for criticizing MicroStrategy. 

Another X, user Rachel, reacting to the criticism, asked Peter Schiff how wealthy his clients would have been if they’d bought Bitcoin 10 years ago instead of gold.

Rachel further asked Schiff whether any of his clients were threatening to sue him for making them miss out due to his obsessive rejection of Bitcoin.

These reactions confirm that BTC has strong support from the crypto community, with many investors bullish on Bitcoin ahead of the upcoming halving event. While some panic over the latest correction, investors such as MicroStrategy view the price decline as an opportunity to accumulate more tokens before the next rally.