MicroStrategy Buys 480 Bitcoins Worth $10 Million Despite Fall in Value

American business intelligence firm MicroStrategy has spent nearly $10 million buying bitcoin despite the volatility in the crypto market. The number of bitcoins held by MicroStrategy has grown to almost 130,000. The largest cryptocurrency by market capitalization has fallen in price to a little over $19,000.

MicroStrategy has reported buying 480 bitcoins at an average price of $20,817 per bitcoin in a filing to the US Securities Exchange Commission (SEC). The firm has a loss of $1.3 billion on its total holdings of bitcoins. In November last year, the price of bitcoin reached a high of around $69,000. The firm’s chief technical officer Phong Lee told shareholders last month that if the price of bitcoin falls below $21,000, the firm will face a margin call on a loan of $205 million. This loan was taken by MicroStrategy in March to buy more bitcoins.

Getting a margin call would force the firm to sell its bitcoin holdings to protect shareholders from further losses. However, MicroStrategy CEO Micheal Saylor isn’t worried about the crypto market’s decline over the past few weeks. He told in a post on Twitter earlier this month that the company had anticipated volatility and that the balance sheet structure has been changed to deal with it.

Bitcoin miners are selling their cryptocurrency holdings due to the fall in the price of bitcoin and a few other reasons. Miners’ sales on crypto exchanges have risen sharply since June 7. This is indicating miners raising funds by selling their crypto holdings. Listed bitcoin mining firms sold more than their entire output in May as the value of bitcoin fell by 45 percent. Bitcoin miners validate transactions on blockchains by running a network of computers that earns them tokens. These miners have large holdings of bitcoins. Miners hold about 8 million bitcoins. The number of crypto miners also increased due to the rapid rise in the value of bitcoin last year. However, this has reduced margins.

Cryptocurrency prices in Indian exchanges

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