Michael Saylor, head of strategy at MicroStrategy, has again attracted attention by announcing the purchase of 13,390 bitcoins for $1.34 billion. This deal strengthens his influence in the institutional cryptocurrency market.
Details of the Bitcoin Purchase
MicroStrategy acquired 13,390 bitcoins for $1.34 billion, according to a document filed with the SEC on May 12. The operation took place between May 5 and 11 at an average price of $99,856 per bitcoin, while the cryptocurrency had just crossed the psychological threshold of $100,000. The company's total reserves now stand at 568,840 BTC, valued at over $39.4 billion.
Criticism and Controversies
While MicroStrategy’s strategy fascinates, it also draws harsh criticism. Peter Schiff, a notorious bitcoin detractor, expressed concerns about the constant rise in the average acquisition cost, noting that the next purchase could push the average price above $70,000. He warns that any price drop can lead to significant losses for investors.
Market Impact
Despite the criticism, institutional enthusiasm for bitcoin remains robust: over 13,000 institutions and 814,000 individuals hold MicroStrategy shares. The company also plans to raise an additional $84 billion for further bitcoin acquisitions.
Michael Saylor's strategy of purchasing bitcoins continues to draw attention from both analysts and investors. The potential effects of this policy on the cryptocurrency market will be closely monitored.
