Amid the recent crypto market recovery, MicroStrategy, a business intelligence software company known in the crypto community for its Bitcoin (BTC) accumulation, has announced its first Bitcoin purchase of the year.
In addition to the latest acquisition of Bitcoin, the software company also announced it in the 8-K form filed with United States of America The Securities and Exchange Commission (SEC) has paid the loan with the troubled bank in the US, Silvergate.
Microstrategy Resumes BTC Buying Spree After Loan Settlement
Microstrategy started accumulating Bitcoin in 2020 and since then the company has been known for buying in bulk Bitcoin.
Although the company took a three-month hiatus from significant losses in 2022, it has now resumed buying BTC, according to its latest announcement.
Related reading: US Government Holds More Bitcoin Than MicroStrategy, Tesla Merger
MicroStrategy founder and former CEO Michael Saylor disclosed on Twitter post on March 27 the company has acquired an additional 6,455 BTC worth approximately $150 million at an average price of $23,238.
This is the latest purchase now that the company has expanded Bitcoin holding by nearly 10%, bringing the total holding of Bitcoin to 138,955 BTC, bought for $4.1 billion at an average of $29,817 per coin.
In particular, last year, in the middle of the global market downtrend, Microstrategy initiated a $205 million loan with Silvergate which the company used to buy large amounts of Bitcoin.
Although the company recorded significant losses during that period, those losses have since shrunk due to BTC’s rebound since January. According to Micheal Saylor, Silvergate loans are paid at a 22% discount.
The former CEO tweeted:
MicroStrategy paid off Silvergate’s $205M debt at a 22% discount. On 3/23/23, $MSTR acquired an additional ~6,455 bitcoins for ~$150M at an average of ~$23,238 per #bitcoin & held ~138,955 BTC purchased for ~$4.14B at an average of ~$29,817 per bitcoin.
Bitcoin price action over the past week
Followed quickly appreciation in value since the beginning of the month due to the US banking crisis, Bitcoin has seen a retracement recorded in the past 7 days down by nearly 3%. BTC has fallen from a high of $28,783 on March 22 to trade below $28,000 so far.
This drop comes after Federal Reserve Chairman Jerome Powell announced another rate hike. Over the past week, the asset has seen a downward trend in market capitalization and trading volume indicating a slowdown in its buying pressure.
Related reading: Bitcoin And Crypto Face These Important Dates Next Week
At the time of writing, Bitcoin currently has a 24-hour trading volume of $13.9 billion, a figure lower than the amount seen this month above $50 billion during the rally.
Meanwhile, over the past 24 hours, Bitcoin is currently in a downward trend along with other crypto markets. The asset is down nearly 4% at the time of writing with a trading price of $26,858.
Featured images from Unsplash, Charts from TradingView