Microstrategy has increased its BTC holdings, so it has invested at least $425m in the king coin. Leading bitcoin institutional investor, Microstrategy, has revealed an increase in its BTC holdings. The firm’s CEO, Micheal Saylor, revealed via Twitter that “the company’s BTC holdings are now over 114K BTC following the latest additional purchase.”
The firm’s BTC holdings are now worth about $23.17B, with an average buy price of $27,714 for each coin. More details about this purchase were contained in the firm’s 8-K filing with the sec. Part of the details shows that Microstrategy increased its BTC holdings by 9,500 between July and September this year alone. This figure translates to about $420m and an average buy price of $46,878 without excluding fees.
The details also reveal that the firm’s total BTC holdings are now 114,043 BTC. The filing further showed that Microstrategy is in collaboration with Jefferies LLC on an open market agreement. Through this agreement, Microstrategy can give or sell its category A common shares par $0.001 per share. Also, the company has already sold $555,180 shares based on this partnership at an average price of $727.65 per share from July 1, 2021, to date.
Microstrategy Keeps Increasing Its BTC Holdings
Last month, Microstrategy used the gains from its ATM ownership earnings to buy 3,908 BTC. This new purchase makes the asset management firm the number-one holder of BTC among other corporate BTC holders. Tesla is number two, but its 42K holdings are less than twice that of Microstrategy.
Even though Microstrategy reported losses in the BTC holdings section of their Q2 earnings report, they are still not relenting in increasing their BTC holdings. Despite losing 4.5% of its value today, Microstrategy’s purchase is also proof of its bullishness regarding the king coin.
But following the BTC price correction, Microstrategy stock price declined recently. As of this writing, Microstrategy stock price currently trades at $606, a loss of over 25% despite reaching a peak of $805 early last month.
BTC And ETH Consolidates Before Their Next Bullish Run
The price of the top two virtual assets continues to bounce around the same range without any clear direction about their next move. BTC price movement keeps getting narrower even though it keeps consolidating. Since the entire market crash this past week, the king coin has created several lower highs and lower lows.
A trendline drawn across the critical points leads to a falling wedge pattern – a prediction of 6.5% target in the positive or negative direction. A target of $47,635 is possible, provided the 1-hour candlestick closes over $44,950. A decline below $43,900 might put the bears in control until it reaches about $41,335.
BTC trendline chart. Source: TradingView
Similar to the king coin, ETH’s price movement is also unclear. It has been moving along a declining parallel channel in the last seven days. The peak of this technical trend has formed a key resistance for ETH. It has struggled to surpass it and keeps falling back to this trend’s low point each time it attempts to surpass that trend’s peak range. However, ETH has remained stagnant in this trendline’s midpoint for some days now.