Business intelligence firm MicroStrategy has announced its biggest Bitcoin purchase to date.
The Virginia-based company added 55,500 BTC over the past week, shelling out $97,862 per coin.
Alex DovbnyaFollowing the recent gargantuan purchase, MicroStrategy holds a total of 386,700 BTC. On Nov. 8, it stunned the market with a $4.6 billion purchase. However, it took only a week for this juggernaut to shatter its own record.
This is MicroStrategy's third addition to its Bitcoin coffers during the current month. It also announced a $2 billion purchase on Nov. 8.
The company now needs the Bitcoin price to stay above $56,761 for its Bitcoin holdings to remain profitable.
Tomiwabold OlajideThe price of Bitcoin dipped to $97,362 following the Monday announcement, which was more or less expected by the market. MicroStrategy's purchases typically cause little volatility since they tend to be priced in. On Nov. 30, MicroStrategy announced that it intended to buy $42 billion worth of Bitcoin by raising money via debt offerings.
The MicroStrategy stock is also unfazed by the recent announcement. It is currently up by roughly 3%.
The company's stock is up a staggering 515% over the past year. The blistering rally allowed the company, which plunged into obscurity following the dot-com bubble crash in the early 2000s, to appear among the top 100 U.S. public companies by market capitalization, competing with such big names as Intel.
However, there are mounting concerns about the viability of its audacious debt-for-Bitcoin strategy that might end up backfiring if there is a major trend reversal.
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Yuri Molchan
Dan Burgin