Amidst the recent recovery of the crypto market, MicroStrategy, a business intelligence software company known in the crypto community for its Bitcoin (BTC) backlog, announced its first Bitcoin purchase of the year.
Alongside its recent acquisition of Bitcoin, the software company also announced an 8-K filing with the United State The Securities and Exchange Commission (SEC) said it has paid off its outstanding loan with US-based Silvergate Bank.
Microstrategy resumes BTC buying spree after loan settlement
Microstrategy started mining Bitcoin in 2020 and since then the company has been known for its large purchases of Bitcoin bitcoin.
Despite the company taking a three-month hiatus since its large losses recorded in 2022, it has now resumed its bitcoin purchases, according to its latest announcement.
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MicroStrategy co-founder and former CEO Michael Saylor revealed on Twitter mail On March 27, the company acquired an additional 6,455 BTC worth about $150 million at an average price of $23,238.
This recent purchase has now expanded this company bitcoin Holdings increased by nearly 10%, bringing total Bitcoin holdings to 138,955 BTC, bought for $4.1 billion at an average of $29,817 per coin.
Notably, last year, in the midst of a global market downtrend, Microstrategy initiated a $205 million loan with Silvergate, which the company used to purchase a large amount of Bitcoin.
Although the company posted significant losses at the time, its losses have since narrowed as BTC has recovered since January. According to Michael Saylor, the Silvergate loan was paid off at a 22% discount.
The former CEO tweeted:
MicroStrategy repaid the $205 million Silvergate loan at a 22% discount. As of 3/23/23, MSTR has acquired an additional 6,455 Bitcoins for approximately $150 million at an average of $23,238 per #bitcoin and acquired approximately 138,955 BTC for approximately $4.14 billion at an average of $29,817 per bitcoin.
Bitcoin price movement over the past week
its rapid dimension Appreciation in value Since the beginning of the month due to the US banking crisis, Bitcoin has seen a significant rebound in the past 7 days with a drop of almost 3%. BTC dropped from $28,783 on March 22 to trade below $28,000 as of today.
The drop comes after Federal Reserve Chairman Jerome Powell announced another rate hike. Over the past week, the asset has experienced a downward trend in market capitalization and trading volume which indicates a Buying pressure slows.
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At the time of writing, Bitcoin currently has $13.9 billion in 24-hour trading volume, which is lower than the amount seen earlier this month of over $50 billion during its rally.
Meanwhile, over the past 24 hours, Bitcoin is currently in a downtrend along with the rest of the cryptocurrency market. The asset is down nearly 4% at the time of writing at a trading price of $26,858.
Featured image from Unsplash, chart from TradingView
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