MicroStrategy Buys 2,530 BTC Amid Crypto Market Downturn – Will BTC Recover?

With Bitcoin (BTC) retesting the $90,000 price level after falling nearly 9% last week, institutional and corporate investors are seizing this decline as an opportunity to increase their BTC reserves. Business intelligence firm MicroStrategy is one such entity, having purchased 2,530 Bitcoins during the ongoing market downturn.

MicroStrategy Buys Bitcoin Dip

MicroStrategy, unaffected by the cryptocurrency market decline, added more Bitcoin to its holdings for the tenth week in a row. According to advertisement By the company’s CEO, Michael Saylor, MicroStrategy acquired an additional 2,530 bitcoins for $243 million at an average price of $95,972, including fees and other expenses.

The latest purchase brings MicroStrategy’s total Bitcoin holdings to over 450,000 BTC, acquired for a cumulative amount of $28.2 billion at an average price of $62,691 per BTC. Saylor also revealed that on a year-to-date basis, MicroStrategy has generated a BTC return of 0.32%.

For the uninitiated, BTC Yield is a key performance indicator (KPI) used to evaluate the strategy used to acquire Bitcoin. In the context of MicroStrategy, the company financed the purchase of BTC by issuing additional shares of its common stock.

Between January 1 and January 12, MicroStrategy sold 710,245 shares, raising approximately $243 million. These proceeds funded the purchase of Bitcoin, pushing the company’s Bitcoin holdings to a new all-time high (ATH).

Despite this strategic acquisition, MicroStrategy’s stock price has not seen any positive impact. At the time of writing, MSTR is trading at $312.16, down 4.8% on the day. However, MSTR has risen by a staggering 540% over the past year, reflecting its strong correlation with Bitcoin’s price trajectory in 2024.

Along with MicroStrategy, medical healthcare manufacturer Semler Scientific Announce Bought 237 Bitcoins for $23.3 million – purchased between December 16 and January 10 – at an average price of $98,267.

Semler Scientific now owns 2,321 bitcoins, acquired for a total of $191.9 million at an average price of $82,687 per bitcoin. The company funded its latest Bitcoin purchase through offering proceeds and at-the-market (ATM) operating cash flow.

It should be noted that Semler Scientific He started Its BTC acquisition journey took place in May 2024 when it added 581 BTC to its balance sheet. In December 2024, the company scoop An additional 303 BTC to increase its cryptocurrency reserves.

Will BTC recover from the price drop?

After reaching a new ATH of $108,135 on December 17, BTC remains stuck in the price range between $90,000 and $100,000. The recent pullback in the cryptocurrency market has pushed Bitcoin to the lower end of this range, with a potential collapse to $84,000 if the $90,000 support level fails to hold.

While purchases by MicroStrategy and Semler Scientific show companies’ confidence in Bitcoin, crypto entrepreneur Arthur Hayes to caution He expected that more corrections would be made before the inauguration of US President-elect Donald Trump on January 20.

However, some analysts remain optimistic. Elliott wave last analysis It suggests that after the current correction, Bitcoin could rise to the $210,000 level. At press time, Bitcoin is trading at $92,277, down 3% over the past 24 hours.

Featured image from Unsplash.com, graphics from Yahoo! Finance and TradingView.com