Two big companies leapt on the opportunity to buy Bitcoin during Tuesday’s correction — suggesting that institutions may not have been too spooked by the recent bout of volatility.
MicroStrategy, a publicly listed intelligence firm that was one of the first to hold BTC in reserve, has snapped up 19,452 BTC for a cool $1.026 billion… at an average price of $52,765 per coin.
This now means that the company holds 90,531 BTC. In total, it had spent $2.171 billion and paid an average price of $23,985 per coin — suggesting that it’s currently sitting on a profit of $2.35 billion.
MicroStrategy has been borrowing aggressively to fund its Bitcoin purchases, and selling senior convertible notes to investors so it can raise cash. CEO Michael Saylor added:
“We will continue to pursue our strategy of acquiring Bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional Bitcoin.”
Square Snaps Up More BTC, Too
On Tuesday, Square also announced that it was buying Bitcoin worth $170 million, with about 5% of the company’s total assets now tied up in this cryptocurrency.
The crypto-friendly payments company, which is run by Twitter CEO Jack Dorsey, also revealed in its Q3 results that more than one million customers purchased Bitcoin for the first time in January 2021.
Square had bought 4,709 BTC for a cool $50 million back in October — and the latest investment means that it’s paid three times more money for just 3,318 BTC.
Both big announcements likely injected some much-needed cheer into the crypto markets, helping Bitcoin to recover from lows of $45,000.