Michael Saylor buys the dip

You will have noticed our Market Movers section today where we reported on this news, but let’s talk more about the situation now. After the latest purchases, the company now holds a total of 129,699 bitcoins acquired for $3.98 billion. The company’s average purchase price is $30,644 per bitcoin.

Michael Saylor reported on all of this on his Twitter.

MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin. As of 6/28/22 @MicroStrategy holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin. $MSTRhttps://t.co/leQYTXn817

— Michael Saylor⚡️ (@saylor) June 29, 2022

The stock is dependent on the price of the bitcoin

We’ve known that the company’s stock is dependent on the price of bitcoin for quite some time. Recently, when the most famous cryptocurrency fell in the price we also saw MicroStrategy’s stock price drop. There have been some talks about a possible margin call that could be triggered on bigger drops. We also reported on this in our recent article, which is definitely worth reading.

Read also: Is there a potential to rise for BTC and ETH?

Thanks to bitcoin’s plunges, the company’s market cap has dropped by almost 68% since the beginning of the year, which just shows us how connected the company is to bitcoin. The stock itself, which was still close to $560 per share at the beginning of the year, is now trading at $177 per share.

whale tail in ocean, and bitcoin in the horizon

Saylor outlined his strategy in March

“We will slow down our bitcoin acquisitions when market conditions don’t offer us any good opportunities. And when the market presents us with plenty of good opportunities, we can accelerate. And you have to tune in to what we’re going to do quarter by quarter.”

Of course, if we are to take the market price of bitcoin as the opportunities offered, then now should be a good time to buy as bitcoin is at its lowest price in a year. However, that is not happening, and compared to other purchases, this is a slightly smaller purchase.

So we can only guess what this means, if the company doesn’t have enough funds to make bigger purchases, doesn’t want to buy more because of the difficult economic situation, or is just waiting for even bigger drops.