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HomeBusinessDespite the fall, MicroStrategy bought 480 bitcoins worth $10 million

Despite the fall, MicroStrategy bought 480 bitcoins worth $10 million

The number of bitcoins with MicroStrategy has grown to about 130,000. The price of this largest cryptocurrency by market capitalization has fallen to a little over $19,000

MicroStrategy has spent nearly $10 million on buying more bitcoins despite the ongoing downturn in the crypto market. The number of bitcoins with MicroStrategy has grown to about 130,000. In terms of market capitalization, the price of this largest cryptocurrency has fallen to a little over $19,000.

MicroStrategy filed filings with the Securities Exchange Commission (SEC) of the USI have reported buying 480 bitcoins at an average price of $20,817 per bitcoin. The firm has a loss of $1.3 billion on its total holdings of bitcoins. In November last year, the price of bitcoin reached a high of about $ 69,000. The firm’s chief technical officer Phong Lee told shareholders last month that if the price of bitcoin falls below $21,000, the firm will face a margin call on a loan of $205 million. This loan was taken by MicroStrategy in March to buy more bitcoins. 

A margin call would force the firm to sell its bitcoin holdings to avoid further losses to the shareholders. However, MicroStrategy CEO Micheal Saylor is not worried about the decline in the crypto market over the past few weeks. He had told in a post on Twitter earlier this month that the company had anticipated volatility and the balance sheet structure has been changed to deal with it.  

Bitcoin miners are selling their cryptocurrency holdings due to the fall in the price of bitcoin and a few other reasons. Sales by miners on crypto exchanges have increased sharply since June 7. Minors from itThere is an indication of raising funds by selling its crypto holdings. Listed bitcoin mining firms sold more than their entire output in May as the value of bitcoin fell by 45 percent. Bitcoin miners validate transactions on blockchains by running a network of computers that earns them tokens. These miners have large holdings of bitcoins. Miners have about 8 lakh bitcoins. The number of crypto miners also increased due to the rapid increase in the value of bitcoin last year. However, this has reduced margins. 

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