- MicroStrategy added to its Bitcoin holdings with a new purchase of 480 Bitcoins.
- Binance’s CEO noted that MicroStrategy’s move will pay off in the future.
- The markets have been struggling in recent weeks under the weight of unsavory macroeconomic conditions.
MicroStrategy’s move to keep stacking Bitcoins in light of the bearish crypto sentiments has drawn jeers from critics. However, the founder of the world’s largest crypto exchange gave a big thumbs up to the purchase.
Keep stacking sats, Saylor
Michael Saylor, CEO of MicroStrategy took to Twitter to announce the purchase of more Bitcoin by his company. The software firm bolstered its holdings by 480 bitcoins for a combined sum of $10 million.
Each BTC was purchased at an average price of $20,817 and brings MicroStrategy’s Bitcoin holdings to an impressive 129,699 Bitcoins. MicroStrategy adopted the strategy of buying the dip over the last two years with the entire cache of Bitcoin owned by the firm costing $3.98 billion to acquire.
The firm put the US Securities and Exchange Commission on notice with a Form 8-K filing on June 29. The latest purchase means that Saylor’s firm holds 1 Bitcoin out of every 161 Bitcoins that will ever be in existence.
The buy raised eyebrows as it took place at a time when the crypto market is shivering under the blistering cold of a bear market. A cross-section of crypto users poked fun at the company’s decision to buy more Bitcoin when it was tethering on the brink of financial distress.
 
 
“If you’re having a bad day in the markets, at least you don’t have Michael Saylor’s portfolio,” said Justin Waite of the Vox Podcast taking swipes at MicroStrategy’s losses.
Binance boss supports the move
While the critics jeered, Changpeng Zhao, CEO of Binance swung to Michael Saylor’s defense. He noted that in the end, the decision to acquire more Bitcoins would be an added advantage for the company in the long run.
“Many may laugh at him now, but Saylor will get the last laugh in time,” wrote Zhao. “Bookmark this tweet.”
Following the steep drop in Bitcoin’s prices, there were reports of the firm getting a margin call at $21,000. The firm’s Chief Financial Officer revealed back in May that “Bitcoin needs to cut in half or around $21,000 before we’d have a margin call.” It remains unclear whether the firm responded to the call but analysts deduce that the new purchase points towards a strong resolve to stick with Bitcoin to the end.
MicroStrategy borrowed $205 million from Silvergate Bank to acquire Bitcoin in March and at the moment, the company’s Bitcoin business is recording losses northwards of $1.5 billion.