When Bitcoin was launched many years ago, only few people saw its prospects and bought some coins. Others who bought did so to try their luck. When the price of the cryptocurrency exploded, many people became millionaires overnight. As a result, it became common for people to buy BTC whenever there is a price drop and sell when the price increased.
So, it is not new for traders or organizations to buy a cryptocurrency when there is a sharp price drop.
MicroStrategy is one firm that is known for buying large quantities of BTC. Today, the firm added 660 BTC to its crypto bank. Compared to the amount the organization has bought in the past, this is smaller. The company bought 1,914 BTC during December and 1,434 BTC before that.
The reason the company bought a smaller quantity could be tied to the sharp price drop of the crypto. The company has to tread carefully at the moment. Although the coin topped $69k last year, it is currently trading below the $40k mark.
660BTC Added To MicroStrategy’s Vault
Reports from the form submitted to the United States SEC by MicroStrategy revealed the company bought 660BTC ($25 million) from December till the end of January. At the time the firm bought the coin, the average price was $37,865.
In January, the company closed with 125,051BTC which is worth about $4.8 billion using BTC’s price today. The average price at which the organization has bought the popular coin is $30,200 for each BTC.
Why Does The Firm Buy BTC?
The firm bought its first BTC in 2020. Since then, the company has bought a large quantity of the top crypto. MicroStrategy spent $425 million for its first purchase and accumulated more than $1.1 billion with Bitcoin at the end of 2020.
Since then, the company has made it a habit to buy more BTC continually. According to the CEO of MicroStrategy, Michael Saylor, the company has no intention of selling its crypto. Saylor noted that the firm’s strategy is to buy more BTC and store it in their reserve. Given the amount of BTC purchased by the company, the gain will be enormous if the coin should hit the $100k mark.
Currently, the company holds the largest amount of BTC in the world. This report was revealed when the Securities Exchange Commission (SEC) confronted the company about its large crypto holdings.
MicroStrategy is not the only one buying BTC now that the price is low; other firms and individuals are also doing so with high hopes of gain when it rises.