Microstrategy Buys The Pump

Bitcoin permabull Michael Saylor is at it again. As the price of BTC recovers, Microstrategy has made yet another significant purchase to add to its already enormous stash of coins.

MicroStrategy has acquired an additional 12,333 BTC for ~$347.0 million at an average price of $28,136 per #bitcoin. As of 6/27/23 @MicroStrategy hodls 152,333 $BTC acquired for ~$4.52 billion at an average price of $29,668 per bitcoin. $MSTR https://t.co/joHo1gEnR0
— Michael Saylor⚡️ (@saylor) June 28, 2023

After a brutal bear year in which Microstrategy's portfolio dipped to $2 billion in the red, the company is finally no longer under water.

Microstrategy now owns 152,333 BTC—0.725% of Bitcoin's total supply, and 0.785% of its mined supply—which, at the time of writing, has a total value of $4.6 billion. Around $90 million of that is profit.

Michael Saylor is a self-confessed HODLer, and says he has no intention of selling the company's BTC, instead planning to accumulate for the foreseeable future.

A History Of BTC Buys

Microstrategy has been buying bitcoins since August 2020, when Saylor argued that the company needed a way to protect its considerable cash reserves from inflation.

Microstrategy bitcoin buys. Chart: Ecoinmetrics. — Microstrategy has been buying BTC for almost a full market cycle.

Over the last three years, the company has made periodic purchases, with the most recent being one of the largest. (The largest purchase was for 29,646 BTC at the end of 2020, at a total cost of $650 million, or $21,999/BTC.) Purchases through the 2021 bull run have pulled up the average price.

MSTR: A Proxy For BTC

At present, there are few ways for US institutions to gain access to bitcoin. Microstrategy stock has become a popular way to provide exposure to the digital asset, since its share price closely follows the value of BTC. BlackRock, Fidelity, and Bank of America collectively bought almost $250 million of MSTR in Q1 2023.

Microstrategy shows no signs of stopping its accumulation of BTC, despite now being in profit on its holdings. However, critics warned that the enormous stash represent a dangerous source of centralization and a target for hackers.

No idea why so many are cheering this on. This concentration and honey pot is absolutely horrible for bitcoin.

Definitely applaud his passion and support though. https://t.co/1L46uCJB0l
— Bob Loukas (@BobLoukas) June 29, 2023

Throughout the bear market, Saylor has continued to buy BTC for Microstrategy by converting the company's cashflow to bitcoin and by raising debt, confounding those who want to see him fail. As Binance CEO CZ tweeted, "DCA works".

On which note... watch closely, because Ruby.Exchange is going to be releasing a decentralized DCA feature in the very near future.

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