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Bitcoin briefly jumps above $47K after MicroStrategy buys 4,167 BTC Bitcoin briefly jumps above $47K after MicroStrategy buys 4,167 BTC
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Bitcoin briefly jumps above $47K after MicroStrategy buys 4,167 BTC

The market price of bitcoin temporarily jumped above $47,000 on the news that Michael Saylorโ€™s MicroStrategy buys another round of bitcoin. This time, the U.S. based company laid its hands on 4,167 BTC.

Bitcoin briefly jumps above $47K after MicroStrategy buys 4,167 BTC

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

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MicroStrategyโ€™s spree of adding bitcoin to its balance sheet continues without rest. Announced in a tweet by the company CEO Michael Saylor, the IT-services company bought another 4,167 bitcoin (BTC).

As reported by CryptoSlate on March 30, the purchase was expected after MicroStrategy announced the company had borrowed $205 million to buy more bitcoin.

Aside from Saylorโ€™s tweet, the company also, as required, filed a Form 8-K with the U.S. Securities and Exchange Commission, SEC.

MicroStrategyโ€™s 129,218 bitcoin hoard

MicroStrategy announced securing a loan with Silvergate Bank. Under the agreement, $205 million was issued, with bitcoin held by the subsidiary firm MacroStrategy (note: macro, not micro) collateralizing the deal. The press release also mentioned the payment of costs related to the loan and โ€œgeneral corporate purposes.โ€

As per Saylorโ€™s tweet, the company did not use the entire amount of the loan to buy bitcoin as MacroStrategy roughly $190 million at an average price of $45,714 per BTC.

MicroStrategy first bought bitcoin in August 2020 and this latest purchase strengthens its position as the largest known corporate holder of bitcoin, which it has achieved through a mix of self-funding and borrowing. MicroStrategyโ€™s bitcoin holdings now total 129,218 bitcoin acquired for $3.97 billion at an average price of $30,700 per bitcoin.

Self-funding bitcoin buys from company reserves is one thing. But eyebrows were raised in July 2021 when the firm announced it was going through with a complex corporate bond to acquire more. This saw MicroStrategy borrow $400 million to buy Bitcoin.

Bitcoin bounced over $47,000 on the news

On the news of MacroStrategyโ€™s purchase, the market price of bitcoin briefly bounced above $47,000 and is at press time trading around $45,800. The price of bitcoin has been fairly level the past week, after a dip down to $44,350 on April 1st, holding itself in a corridor between $46,000 and $ 47,000.

According to crypto analysts IntoTheBlock, on-chain data shows that retail customers are accumulating bitcoin. Addresses holding 0.1-1 BTC have increased their balance by 1.47% in just 30 days. Moreover, since the January lows, all the clusters of addresses holding below 1 BTC have increased their holdings up to 5.51%.

Since the all-time high at $60,044 set on November 10th, 2021, bitcoin is down 32.3%.

Bitcoin Market Data

At the time of press 3:54 pm UTC on Apr. 5, 2022, Bitcoin is ranked #1 by market cap and the price is down 0.1% over the past 24 hours. Bitcoin has a market capitalization of $872.46 billion with a 24-hour trading volume of $34.09 billion. Learn more about Bitcoin ›

Bitcoin

3:54 pm UTC on Apr. 5, 2022

$45,910.42

-0.1%
Crypto Market Summary

At the time of press 3:54 pm UTC on Apr. 5, 2022, the total crypto market is valued at at $2.13 trillion with a 24-hour volume of $110.2 billion. Bitcoin dominance is currently at 40.91%. Learn more about the crypto market ›

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