He does not budge and remains one of the hardliners with Jack Dorsey, the former CEO of Twitter.
Billionaire Michael Saylor still believes in bitcoin. And to prove it, he just bought $25 million worth of cryptocurrency, which has fallen 45% in value since its November 10 high.
Saylor told his 2 million Twitter (TWTR) - Get Free Report followers Tuesday that his company MicroStrategy (MSTR) - Get Free Report had purchased 660 bitcoins in cash at a price of $37,865 per unit as of January 31, for a total amount of $25 million.
Bitcoin prices have dropped 44.2% from their all-time high set on November 10, as of time of writing. But, the prices are up 1.6% compared to Monday, the day Saylor bought additional bitcoin.
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In late 2020, MicroStrategy became the first publicly traded company in the U.S to buy and hold bitcoin. Since then, the business intelligence software maker has accumulated around 124,391 bitcoins worth about $4.8 billion at current prices, according to Bitcoin Treasuries.
Saylor's bet has yet to turn sour: MicroStrategy spent just over $3.75 billion to purchase its 124,391 bitcoin, and even though the value of bitcoin has fallen dramatically, the company has already realized a strong capital gain.
Saylor said on Twitter that MicroStrategy now holds 125,051 bitcoin.
This decision to buy more during the current crypto crash suggests that Saylor continues to believe that bitcoin has a rosy future ahead of it.
Unlike many retail investors, the companies that have invested in bitcoin over the past two years have not yet lost their bets.
Tesla (TSLA) - Get Free Report bought 43,200 bitcoins in early 2021 for $1.5 billion. These bitcoins are currently worth around $1.7 billion, according to Bitcoin Treasuries. As for Square Inc, Jack Dorsey's financial services company, which recently renamed itself Block (SQ) - Get Free Report, its bitcoin hoard of 8,027 bitcoin purchased for $220 million is currently worth nearly $310 million.
Saylor, who believes that bitcoin will rebound, has advised his followers not to panic, as we've previously reported. "Our strategy with #bitcoin has been to buy and hold," he repeated on Twitter on Jan. 25.
It is not certain that investors will be patient. MicroStrategy's stock is down 30,7% this year compared to its closing price on December 31. It was up almost 2.5% on Tuesday as of the time this was written
The cryptocurrency market, like most risk assets, suffers from the imminent hike in interest rates by the Federal Reserve after almost two years of near-zero rates.