14 Jun 2021

MicroStrategy to buy more bitcoin

MicroStrategy is in the process of acquiring more bitcoins. Therefore, we examine the previous note offerings to understand what could happen this time.
The first note offering on MicroStrategy took four days to complete, followed by a 10-day long process of acquiring bitcoins for the proceeds. MicroStrategy purchased 29,646 bitcoins at an average price of $21,925, with the market seeing a strong bull trend during the accumulation period.
The second note offering took three days to complete. MicroStrategy then spent five days purchasing bitcoin, with the market seeing a sharp bounce on the announcement of MicroStrategy completing its offering before tumbling downwards. MicroStrategy bought 19,452 bitcoin at an average price of $52,765 in this round.
The current note offering took seven days and was completed yesterday. MicroStrategy is set to purchase bitcoin worth $500 million in the upcoming days, which will likely lead the bitcoin balances of MicroStrategy to surpass 100,000 BTC. This time, the note announcement coincided with a local top, and the announcement did not seem to have any impact on the price. This could suggest that many have been front-running MicroStrategy this time around.
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