As Bitcoin (BTC) retests the $90,000 price level after falling nearly 9% last week, institutional investors and companies are viewing the decline as an opportunity to add to their BTC reserves. Business intelligence company MicroStrategy is one such company, having purchased 2,530 BTC during the ongoing market downturn.
MicroStrategy buys Bitcoin dip
Undeterred by the crypto market decline, MicroStrategy added to its holdings for 10 consecutive weeks. MicroStrategy acquired an additional 2,530 BTC for $243 million, at an average price of $95,972, including fees and other expenses, according to an announcement by company CEO Michael Saylor.
With this acquisition, MicroStrategy’s total Bitcoin holdings exceed 450,000 BTC, acquired at an average price of $62,691 per BTC, for a cumulative total of $28.2 billion. Saylor also revealed that MicroStrategy has achieved a BTC yield of 0.32% on a year-to-date (YTD) basis.
For the uninitiated, BTC yield is a key performance indicator (KPI) used to evaluate strategies used to acquire Bitcoin. In MicroStrategy’s context, the company financed its BTC purchases by issuing additional common stock.
From January 1st to January 12th, MicroStrategy sold 710,245 shares, raising approximately $243 million. These proceeds funded Bitcoin purchases, and the company’s BTC holdings reached a new all-time high (ATH).
Despite this strategic acquisition, there was no positive impact on MicroStrategy’s stock price. At the time of writing, MSTR is trading at $312.16, down 4.8% on the day. However, MSTR is up an impressive 540% over the past year, reflecting its strong correlation with the 2024 Bitcoin price trajectory.
Source: Yahoo! Finance
Alongside MicroStrategy, medical healthcare manufacturing company Semler Scientific announced the purchase of 237 BTC for $23.3 million between December 16 and January 10 at an average price of $98,267.
Semler Scientific currently holds 2,321 BTC, acquired at an average price of $82,687 per BTC, for a total value of $191.9 million. The company funded its latest BTC purchases with proceeds from at-the-market products and operating cash flow.
Recall that Semler Scientific started its BTC acquisition journey in May 2024 when it added 581 BTC to its balance sheet. In December 2024, the company raised an additional 303 BTC to increase its crypto reserves.
Will BTC recover from the price slump?
After reaching a new ATH of $108,135 on December 17th, BTC has been stuck in the $90,000-$100,000 price range. The recent pullback in the crypto market has pushed Bitcoin towards the lower end of this range, and if the $90,000 support level fails to hold, it could fall to $84,000.
While the purchases by MicroStrategy and Semler Scientific demonstrate corporate confidence in Bitcoin, crypto entrepreneur Arthur Hayes believes further adjustments are expected ahead of US President-elect Donald Trump’s inauguration on January 20th. warned that it could happen.
Nevertheless, some analysts remain optimistic. Recent Elliott Wave analysis suggests that BTC could rise to $210,000 after the current correction. At the time of writing, BTC is trading at $92,277, down 3% in the past 24 hours.
BTC is trading at $92,277 on the daily chart | Source: BTCUSDT on TradingView.com
Featured image from Unsplash.com, chart from Yahoo! Financial and TradingView.com
