MicroStrategy Still Buying Bitcoin at $20,000, Documents Reveal
Bitcoin

MicroStrategy Still Buying Bitcoin at $20,000, Documents Reveal

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5 months ago

Data from BitcoinTreasuries.net shows that the value of MicroStrategy's Bitcoin now stands at $2.59 billion — a loss of close to $1.5 billion.

MicroStrategy Still Buying Bitcoin at $20,000, Documents Reveal

MicroStrategy bought another 480 BTC in May and June, new filings with the U.S. Securities and Exchange Commission show.

The business intelligence firm spent $10 million on the crypto investment — that works out at a price of roughly $20,817 per Bitcoin.

And all this means that, as of June 28, it had 129,699 BTC in reserve.

MicroStrategy has spent a total of $3.98 billion on this crypto stash, and an average of $30,664 per Bitcoin.

But with prices struggling to stay above $20,000, Michael Saylor's publicly listed company is nursing quite a substantial unrealized loss.

Data from BitcoinTreasuries.net shows that the value of MicroStrategy's Bitcoin now stands at $2.59 billion — a loss of close to $1.5 billion.

To complicate matters further, some of this BTC has been purchased through taking out margin loans.

Back in March, MicroStrategy borrowed $205 million from Silvergate Bank and used some of its Bitcoin as collateral.

After prices fell below $21,000, the company had to post additional collateral to prevent its position from being liquidated.

Saylor has described concerns about MicroStrategy's aggressive BTC investment as "much ado about nothing," and says his firm is well placed to "HODL through adversity."

The company's stock has fallen by 72.57% over the past 12 months — and spookily, BTC is currently trading at a 71% discount from all-time highs that were set last November.

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