• Written by: Harpreet Kaur
  • Tue, 01 Feb 2022
  •   India

Bengaluru, February 1, 2022: MicroStrategy, a significant Bitcoin (BTC) investor, has revealed another significant BTC acquisition, this time for a total of 125,051 BTC as of Monday. As per the official data, MicroStrategy bought much fewer BTC in January than that in prior months. According to several experts, Bitcoin is heading the road down for […]

MicroStrategy Buys Additional 660 Bitcoin for $25M During Market Dip

Bengaluru, February 1, 2022: MicroStrategy, a significant Bitcoin (BTC) investor, has revealed another significant BTC acquisition, this time for a total of 125,051 BTC as of Monday. As per the official data, MicroStrategy bought much fewer BTC in January than that in prior months.

According to several experts, Bitcoin is heading the road down for all cryptocurrencies, as macro signs may indicate calamity for the industry in the immediate future. MicroStrategy bought 660 BTC for “about $25 million” in cash during December 30, 2021, as well as January 31, 2022, as per an official paper filed with the US Securities and Exchange Commission (SEC) on Tuesday.

Bitcoin is a whole new form of currency. It operates as a digital asset and a store of value in the same way that gold does. It isn’t gold, and that’s not subject to government regulation. It’s a type of digital currency. A form of money that is totally created, traded, and exchanged on the internet. Bitcoin is a digital currency that may be used to store, transfer, and manage value. Bitcoin simplifies both the notion and application of value.

Here is the price chart of Bitcoin:

 

“A number of things may have an impact on the cryptocurrency market as well as its pricing. Uncertainty around the Cryptocurrency Bill around the world may be one of the reasons that contributed to cryptocurrency price changes, according to Vikas Ahuja, BACC Fellow as well as CEO of Cross Tower India.

About MicroStrategy

MicroStrategy, a corporation that specialises in business analytics tools, has begun collecting bitcoin. According to the survey, the average BTC buying price was $37,865 per BTC, including fees as well as expenditures. MicroStrategy held over $3.78 billion in BTC as of January 31, with an average purchase price of around $30,200 per BTC, including fees as well as expenditures.

The recent report came after the Securities and Exchange Commission (SEC) purportedly rejected MicroStrategy’s Bitcoin accounting methods, leading the company’s stock to plunge in mid-January.

MicroStrategy’s reporting of data pertaining to BTC purchases regarding the non accounting principles was explicitly criticised by the SEC (GAAP). The authority claimed that MicroStrategy calculated statistics for its BTC purchases using non-GAAP procedures that excluded the “effect of share-based compensation expenditure, impairment losses, as well as profits on sale of intangible assets.”

The current Bitcoin purchase appears to be small in comparison to MicroStrategy’s other BTC purchases. MicroStrategy reported two significant BTC purchases in December 2021, buying 1,434 BTC from November 29 to December 9 at an average price of $57,477 each BTC and afterwards 1,914 BTC from December 9 to December 29 at such an average price of $49,229 each BTC.

Earlier, the corporation purchased 7,002 BTC at an average price of $59,187 each BTC from Oct. 1 to Nov. 29.

Despite a market dip in January, significant Bitcoin investors such as the government of El Salvador made significant investments in BTC. El Salvador’s president, Nayib Bukele, said on Jan. 21 also that the Salvadoran government had purchased 410 bitcoins for $15 million, averaging $36,585 per bitcoin.

Is it Wise to Purchase Bitcoin during Market Dip?

I don’t recommend avoiding buying the dip, but caution is required. My advice is to make investments you could afford to give up as well as avoid the pitfalls of averaging or buying the downturn, that is nothing more than fruitless market timing.

Keep your Cryptocurrency or Bitcoin investments to less than 5% of your total net worth. If your crypto holdings are below the 5% cap, then you could buy on dips if there is enough surplus. Remember that this 5% guideline isn’t etched in stone; it’s intended to protect your hard-earned cash from such a highly unstable asset class. Based on your risk level, you can almost always raise your amount.

You must avoid FOMO (fear of missing out). Don’t imagine for a second that crypto won’t continue to increase, and you should get involved right away. It would help if you can overcome your fear of losing out too and stick to your investment strategy. Do your research as well as stick to your level of risk before investing in any cryptocurrency as well as bitcoin.