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U.Today - MicroStrategy, the largest corporate holder of Bitcoin (BTC), has stunned the cryptocurrency community. Notably, for the first time in a long while, MicroStrategy did buy or trade Bitcoin last week. This development has left many shocked given the established pattern of the business intelligence firm.
Is MicroStrategy in strategic shift or exercising caution?
In an update by Michael Saylor on the development, he stated that MicroStrategy decided not to sell any shares of class A common stock. This refers to MicroStrategy’s equity offering program, which allows it to sell shares of its MSTR stocks.MicroStrategy has been selling MSTR at market price to raise capital since Q1, 2024. According to Saylor, unlike previous weeks, the business intelligence firm has also held back from purchasing any additional Bitcoin for its holdings.
The company has been on a Bitcoin accumulation spree since its decision to embrace digital assets in August 2020. Hence, the development to refrain from buying more Bitcoin, particularly with the drop in price, is significant to investors.
Currently, MicroStrategy’s Bitcoin haul stands at an impressive 471,107 BTC. The cumulative cost of this acquisition is about $30.4 billion at an average price of $64,511 per BTC.
This still leaves MicroStrategy ahead, with unrealized profits of approximately $30,700 per BTC.
Mixed reactions from crypto community
The update shared by Saylor has received mixed reactions from members of the broader crypto community. Many consider it laudable as it shows transparency and openness about MicroStrategy’s Bitcoin transactions. Specifically, one X user, @jordonriver47, believes this is a strategic move for MicroStrategy.With its earnings report coming up, he sees MSTR shares skyrocketing. Then, the firm can sell more shares and buy more BTC.
However, some argue that the business intelligence firm might have bearish sentiment about Bitcoin considering the recent price volatility. They consider it curious that, with a dip in Bitcoin, the highest accumulator of the digital asset held back.
Bitcoin has continued to fluctuate, with the price dipping as low as $91,242.89 in earlier trading hours. However, the coin rebounded soon after and rose to $99,397.65. Many market participants anticipated BTC would once again breach the $100,000 level.
As of this writing, th3 BTC price was changing hands at $94,611.40, which represents a 4.19% decline in the last 24 hours.