As Bitcoin (BTC) navigates a volatile phase, retesting the $90,000 mark after a sharp 9% dip over the past week, institutional investors are capitalizing on the pullback. MicroStrategy, the business intelligence giant known for its Bitcoin advocacy, has once again made headlines with a strategic BTC purchase.
MicroStrategy’s Bold Bet on Bitcoin
Undaunted by market turbulence, MicroStrategy has acquired 2,530 BTC for $243 million at an average price of $95,972. This marks the company’s 10th consecutive week of Bitcoin accumulation, signaling unwavering confidence in the asset. According to CEO Michael Saylor, this latest addition brings MicroStrategy’s total holdings to over 450,000 BTC, valued at $28.2 billion, with an average acquisition cost of $62,691 per Bitcoin.
To fund this purchase, MicroStrategy issued 710,245 shares of its common stock, raising $243 million. Despite this bold move, the company’s stock price (MSTR) declined by 4.8% on the day, trading at $312.16. However, MSTR has gained an impressive 540% over the past year, mirroring Bitcoin’s significant price trajectory in 2024.
Institutional Confidence Amid Market Pullbacks
MicroStrategy isn’t the only corporation taking advantage of Bitcoin’s dip. Semler Scientific, a medical healthcare manufacturing firm, recently acquired 237 BTC for $23.3 million at an average price of $98,267. This purchase raises the company’s total Bitcoin holdings to 2,321 BTC, acquired at an average price of $82,687.
Semler Scientific began its Bitcoin journey in May 2024, adding 581 BTC to its balance sheet. The firm’s continued purchases underscore the growing trend of corporate confidence in Bitcoin as a strategic asset, even amid market corrections.
What Lies Ahead for Bitcoin?
Following its all-time high of $108,135 on December 17, Bitcoin’s price has remained in a tight range of $90,000 to $100,000. Analysts warn that a failure to hold the $90,000 support level could push BTC down to $84,000.
However, optimism persists among certain market watchers. An Elliott Wave analysis suggests that once the current correction ends, Bitcoin could soar to $210,000. At press time, BTC is trading at $92,277, down 3% in the past 24 hours.
While some, including crypto entrepreneur Arthur Hayes, predict further volatility ahead of President-elect Donald Trump’s inauguration, the continued purchases by MicroStrategy and Semler Scientific highlight sustained confidence in Bitcoin’s long-term value.
As institutional players double down on their investments, the market eagerly awaits Bitcoin’s next major move. Will the leading cryptocurrency overcome its current slump to reach new highs? Only time will tell.
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