MicroStrategy buys the dip by purchasing 660 Bitcoin for $25M

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Leading Bitcoin (BTC) investor MicroStrategy announced another major BTC purchase during the market slump to collect a total of 125,051 BTC as of Monday.

According to an official form filed with the US Securities and Exchange Commission (SEC) on Tuesday, MicroStrategy purchased 660 BTC between December 30, 2021 and January 31, 2022, for “nearly $25 million” in cash.

The average purchase price of BTC was $37,865 per BTC, including fees and expenses, the report notes. As of January 31, MicroStrategy held approximately $3.78 billion in BTC with an average purchase price of approximately $30,200 per BTC, including fees and charges.

The latest report comes shortly after the US Securities and Exchange Commission (SEC) rejected MicroStrategy’s Bitcoin accounting methods, causing MicroStrategy’s shares to plunge in mid-January.

The Securities and Exchange Commission specifically objected to MicroStrategy’s data reporting BTC purchases based on Non-Generally Accepted Accounting Principles (GAAP). The authorities claimed that MicroStrategy uses numerical methods to purchase non-GAAP BTC, excluding “the impact on inventory compensation costs, as well as impairment losses and proceeds from the sale of intangible assets.”

The recent bitcoin purchase doesn’t seem to be that big compared to the last bitcoin purchase from MicroStrategy. In December 2021, MicroStrategy announced two major BTC purchases: buying 1,434 BTC from November 29 to December 9 at an average price of $57,477 per BTC, then buying 1,914 BTC from December 9 to 29 at an average price of $49,229 per bitcoin. BTC.

Previously, the company bought 7,002 BTC from October 1 to November 29 at an average price of $59,187 per bitcoin.

Related: MicroStrategy CEO Won’t Sell $5 Billion BTC Stash Despite Crypto Winter

Major Bitcoin investors, including the government of El Salvador, continued to invest in BTC amid the January market downturn. On January 21, Salvadoran President Neb Bukele announced that the Salvadoran state had purchased 410 bitcoins for $15 million, bringing the average price to around $36.585 per bitcoin.

Source: CoinTelegraph

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