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Accurate strategya business intelligence company whose appetite for Bitcoin (BTC) remains insatiable, recently purchased more Bitcoin. Buy that It cost the company about $561 million For 5,262 bitcoins, they were made at an average price of $106,662 per bitcoin.
Effects of falling Bitcoin prices on MicroStrategy
Given recent developments in the broader cryptocurrency market, it's easy to classify this latest purchase as a wrong move. Overall, Bitcoin price is facing volatility as the leading digital asset struggles to break the historic $100,000 mark and turn as support.
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As of this writing, Bitcoin is commerce At $94,238.21, up 1.52% in the past 24 hours. Although trading volume increased by 34.12% to reach $54.58 billion, investor confidence did not affect the price.
This decline in the price of Bitcoin set MicroStrategy back over $65 million from its last purchase alone. At the current rate of BTC of $94,238, MicroStrategy had a loss of $65,375,088.
This is important since MicroStrategy is always ahead, with huge profit margins on past purchases. In this situation, unless Bitcoin rebounds quickly enough, MicroStrategy could have a significant loss to deal with.
MicroStrategy Financing and Commitments
It is worth noting that MicroStrategy's purchases of Bitcoin are made with capital raised from issuing convertible bonds, securing lines of credit, selling stocks and using corporate bonds. It recently revealed plans to raise $42 billion in stocks and fixed-income securities in the coming years.
Therefore, in order for MicroStrategy to fulfill its obligations to investors who purchased these convertible securities, the price of Bitcoin must remain high. In the first place, falling prices may trigger panic, causing its shares and... MSTR or Plunge also. This development may negatively impact MicroStrategy's capital base.
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Additionally, as the largest holder of Bitcoin, with about 2.2% of the total supply, MicroStrategy's actions could significantly impact the asset price outlook.
Analysts insist that given the expected change of administration in the US by January 20, 2025, bullish sentiment could support Bitcoin on the price recovery path. How this will happen, only time will tell.
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