Home News Despite bitcoin’s bumpy ride, MicroStrategy plans to buy more

Despite bitcoin’s bumpy ride, MicroStrategy plans to buy more

by SuperiorInvest

While they like crypto assets Ethereum (ETH) got most of the attention thanks to an upcoming upgrade called “Merging”, the Bitcoin network itself is getting some headlines. At first, the top cryptocurrency showed signs of a breakout before falling to $20,000 on September 13, indicating a volatile week. Second, despite huge losses in the last quarterly reportsoftware company Microstrategy (NASDAQ: MSTR) announced the purchase of additional bitcoins.

Key things

  • Despite promising signs, Bitcoin fell to $20,000.
  • MicroStrategy has filed to sell up to $500 million worth of shares to buy more BTC.
  • MicroStrategy shares are down more than 50% so far this year.

MicroStrategy Doubles Bitcoin Bet

MicroStrategy has made it clear that it is one of Bitcoin’s strongest supporters, committing billions of capital to the asset. It has been said time and time again that Bitcoin is an asset that will have a place in the global economy in the future, and this has been praised by cryptocurrency enthusiasts. Last week, it made an offer to sell up to $500 million worth of shares to buy even more bitcoins, showing that the bear market has not changed its stance.

All this happened despite the fact that the company’s strongest supporter of BTC is Michael Saylor no longer CEO. She announced the separation of the roles of CEO and Chairman. This was after a loss of $1 billion was revealed in the second quarter financial results due to the market slump. It shows that the company has fundamentally strong convictions about the assets. Saylor remains executive chairman.

The bear market and the decline in the price of Bitcoin caused MicroStrategy to take a $917.8 million write-down. As of June 30, it holds 129,698 bitcoins, and the refueling of the cryptocurrency’s price has also seen its shares fall significantly. MSTR shares are down more than 50% so far this year.

Overall, the sentiment around Bitcoin seems to be changing slightly. Whether it consolidates into improvement remains to be seen, but MicroStrategy certainly believes so.

Short-Term Hopes for Bitcoin

At the moment, the market seems to be looking to break out of the slump it went through this year – or at least investors do. Several assets were in the green and lifted after months of heavy losses Ethereum Mergerinvestors are hoping for a strong end to 2022.

Institutional investors also seem bullish on BTC. For example, Fidelity is considering offering bitcoins to retail investors. Such movements indicate positive hopes for the asset in the short to medium term future.

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