U.S.-based business intelligence firm MicroStrategy has added 480 Bitcoin (BTC) to its coffers despite the bear market, the company announced on June 29.
In a Form 8-K filed with the U.S. Securities and Exchange Commission, MicroStrategy said it purchased the tokens between May 3 and June 28. The company bought the 480 BTC for $10 million at an average price of $20,817, including fees and expenses.
With this purchase, MicroStrategy and its subsidiaries held approximately $129,699 BTC as of June 28. The firm claims it acquired the tokens at an aggregate amount of $3.98 billion and an average price of $34,664, including fees and expenses.
Meanwhile, BTC continues performing poorly, lingering below $22,000 for nearly two weeks. At the time of writing, the flagship cryptocurrency is changing hands at $20,029.68 after plunging 4.51% over the past 24 hours.
As CryptoSlate previously reported, BTC’s recent drop below the $20,000 level enticed investors and resulted in some buying the dip. According to CoinShares, BTC saw inflows totaling $28 million in the week ending June 19. Notably, this is the same week in which BTC set an 18-month low of $17,708.62.
MicroStrategy continues bolstering its BTC strategy
This news comes after MicroStrategy denied receiving a margin call for its $205-million BTC-backed loan from Silvergate Capital. MicroStrategy President Phong Lee had previously pointed out that if BTC fell below $21,000, it would automatically trigger a margin call.
While shooting down the rumors of getting a margin call, MicroStrategy said,
“We can always contribute additional bitcoins to maintain the required loan-to-value ratio. Even at current prices, we continue to maintain more than sufficient additional unpledged bitcoins to meet our requirements under the loan agreement.”
While it remains unclear whether the company has received a margin call – seeing as BTC price has traded below $21,000 for a while now – the recent purchase shows its balance sheet is still strong despite the crypto winter.
According to MicroStrategy CEO Michael Saylor, the company would still be able to post collateral even if BTC’s price fell below $3,562.
Saylor added,
When @MicroStrategy adopted a #Bitcoin Strategy, it anticipated volatility and structured its balance sheet so that it could continue to #HODL through adversity. https://t.co/rPSUVPHUVw
— Michael Saylor⚡️ (@saylor) June 14, 2022
Source: https://cryptoslate.com/saylors-faith-in-bitcoin-unshaken-as-microstrategy-buys-another-480-btc/