American business intelligence giant MicroStrategy is back on track to do some shopping as the market goes downwards. The CEO of the company, Michael Saylor, revealed that MicroStrategy bought the dip. They purchased 480 Bitcoin(BTC) at an average price of $20,817 per coin.
Notably, every time MicroStrategy bought Bitcoin(BTC) they’ve made headlines as huge Bitcoin(BTC) bulls. Between December 2021 and January 2022, MicroStrategy bought 660 Bitcoin(BTC) for about $25 million in cash. Moreover, it has taken a $205 million Bitcoin(BTC)-collateralized loan with Silvergate Bank to fill its bag some more.
New CFO is More Bullish
The firm also made headlines when the new CFO, Andrew Kang, declaring that they won’t sell a single BTC that MicroStrategy owns.
A quick calculation shows that the company spent less than $4 billion on all of its Bitcoin(BTC). But at the current price of BTC, it has lost an unrealized amount of more than $1 billion, which is a significant depreciation compared to when bitcoin traded at all-time-highs of over $69,000 last year.
For Saylor, short-term price volatility is not important, he sees the bigger picture of bitcoin possibly coming a world reserve currency
Saylor Has Faced Criticism for his Bullish Buying
MicroStrategy, with around 129,699 bitcoins as of June 28, 2022, is facing serious criticism from major bitcoin critic Peter Schiff who commented on Saylor’s post and questioned his decision.
Schiff said, “Increasing your stake by less than .004% seems more like an attempt to influence the market by demonstrating your conviction to other investors. But if you’re so sure Bitcoin(BTC) is cheap, why not buy $100 million? You must think there’s still a lot of downsides left in this move.”
Is Bitcoin(BTC) a Safe Investment?
Saylor has doubled down that he thinks Bitcoin(BTC) will not be banned at this point. He says “it’s obviously better than gold than what gold wants to be”, which should take Bitcoin(BTC) to at least a $5 trillion market cap based on where gold trades. He believes that the bipartisan legislation on Capitol Hill and Janet Yellen’s favorable speech about Bitcoin(BTC) puts it into the mainstream for good.
