MicroStrategy takes advantage of the market downturn to grab more BTC. The bitcoin purchase comes after your senior bonus offering.

The American business intelligence company, MicroStrategy, clarified that it has 105,085 bitcoins (BTC) at its hands. The confirmation came right after announcing the purchase of more crypto assets this Monday, June 21.

The company that Michael Saylor leads acquired approximately 13,005 additional bitcoins in the order of $ 489 million, at an average price of $ 37,617 per bitcoin. The purchase includes fees and expenses as the company explained in a statement.

In this regard, Saylor said that the shareholder base is being in the rotation this way and they hope to transform MicroStrategy into a company that can sell business software and purchase and hold bitcoins, something that in his opinion has been achieved due to leverage.

The executive and promoter of bitcoin to the US network CNBC said last week that the bitcoin business is driving shareholder profitability. He thinks the employees seem to be happy with the situation. The shareholders are also happy.

MicroStrategy consolidates itself as the company that carries the largest accumulation of bitcoins, leaving companies such as Tesla (42,000 BTC), Galaxy Digital (16,000), and Square (8,000 BTC) behind.

The Fed and its Supportive Stance on MicroStrategy

The issuance of seven-year bonds by MicroStrategy took indirect participation of the US Federal Reserve (Fed). At the end of March last year, and as a contingency measure to fight the COVID-19 pandemic, the bank injected capital into the SPDR Bloomberg Barclays High Yield Bond.

The measure was part of a strategy to get markets active back again in the face of the looming crisis and the freezing of credit markets, according to a report posted by Bloomberg.

Now, this fund, identified with the JNK ticker, is one of the owners of the debt securities that MicroStrategy issued last Tuesday to acquire bitcoin.

Fed Chairman Jerome Powell stressed in March this year that bitcoin didn’t reunite the features to rank as a candidate to replace the dollar as a store of value currency. According to the executive, bitcoin has the potential to become a substitute for gold, but not for the US currency.

According to the report, the Fed would also have support in the iShares Broad USD High Yield Corporate Bond, another ETF that owns debt securities managed by MicroStrategy. This policy of printing money to inject into the markets is one of the main reasons that would be driving the peaks and the falls in the price of cryptocurrencies

In this way, the agency would be the fourth-largest owner of a listed fund or ETF that holds 1% of its portfolio in these bonds. This means that the Fed, if it were to get the ownership in the ETF, would have collaborated without any intention with the investments that the company has been managing with the main cryptocurrency since the past year.

By: Jenson Nuñez

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