MicroStrategy Purchases Additional 7,002 Bitcoin

Investors took advantage of BTC’s dip on Friday to purchase more bitcoins at lower prices. Among them is the current largest bitcoin holding firm, MicroStrategy. The software company has now added 7,002 bitcoins to its holdings. The purchase, which was paid for in cash, cost the company a whopping $414 million. The purchase was made between October and November.

As of writing, MicroStrategy now owns 121,044 bitcoins. At the current price, the value of that number is a staggering $7 billion. The company has continued its tradition of purchasing bitcoins every quarter of the year. This recent purchase represents its last purchase for the year. It was made at approximately $59,187 per bitcoin.

MicroStrategy’s bitcoin pile has already yielded over $3 billion in profits since purchase. Despite price fluctuations, the company has made nearly a 100% profit on its bitcoin purchase. Microstrategy continues to defy the odds and critics to rake in profits from bitcoin. But one can’t help but question the decision and ask if the company has a coping mechanism if bitcoin crashes.

According to available data on MicroStrategy, the company took loans to purchase bitcoins and is in debt to the tune of $2 billion. Investors and critics are worried about a potential bankruptcy if the price of bitcoin crashes beyond safe levels. For now, however, the company continues to stay in profit.

Bitcoin to $70,000?

Conservative analysts say that the price of bitcoin could hit $70,000 by the end of the year. Earlier, in August, some had predicted $100,000, given BTC’s momentum at that time when it was picking up from a market meltdown that started in May. Bitcoin recovered and even hit a new all-time high in November.

Last Friday, the coin dipped $2,000 within hours after the discovery of a new coronavirus strain was announced. But the market recovered from the news and bitcoin regained 7% on Sunday to trade touch $58,000 early on Monday. The coin trades below that price now but looks to be gearing to break the resistance around that zone.

Bulls have taken control of the market and will be looking to sustain that momentum. A couple of bullish news could see bitcoin move above $60,000 and begin the long journey towards $70,000. Bitcoin only needs to do nearly 19% from its current price to hit $70,000. Bullish news such as an institutional investor purchasing thousands of bitcoins could do the trick. But for now, BTC has not reacted to the news. The coin still trades below $58,000.

Crypto Adoption Grows

MicroStrategy now holds around 0.64% of the total bitcoin in circulation. The company is leading the race in Bitcoin exposure and adoption. In June, the CEO of MicroStrategy, Michael Saylor, predicted that in the next few years, billions of people around the world will own crypto wallets and will own some bitcoin.

His predictions may eventually come to pass given bitcoin’s current growth rate which has surpassed traditional stocks.