Yahoo Finanza With MicroStrategy Stacking More Bitcoin, Can the Rally Heat up?
Key Insights:
Microstrategy has bought more BTC.
The pro-bitcoin software firm now holds approximately 129,218 bitcoins.
BTC’s recent rally has been fueled by institutional buying.
MicroStrategy, the US-based enterprise software firm led by bitcoin (BTC) permabull Michael Saylor, has stacked more BTC in its portfolio. Its recent BTC buys have taken its total bitcoin holding to approximately 129,218 BTC.
Stacking Sats
On Tuesday, the Nasdaq-listed pro-bitcoin software firm announced that one of its subsidiaries had obtained a bitcoin-backed loan to purchase additional BTC.
MicroStrategy CEO Michael Saylor tweeted,
“MacroStrategy has purchased an additional 4,167 bitcoins for $190.5 million at an average price of $45,714 per bitcoin. As of 4/4/22 MicroStrategy Hodls 129,218 bitcoins acquired for $3.97 billion at an average price of $30,700 per bitcoin.”
MacroStrategy, a subsidiary of Microstrategy, closed a $205 million bitcoin-collateralized loan with Silvergate Bank to purchase over 4000 BTC. The purchases took place between February 15 and April 4.
MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per #bitcoin. As of 4/4/22 MicroStrategy #hodls ~129,218 bitcoins acquired for ~$3.97 billion at an average price of ~$30,700 per bitcoin. $MSTRhttps://t.co/Z45OuJU5KI
— Michael Saylor⚡️ (@saylor) April 5, 2022
In a detailed statement, it was revealed that Silvergate Bank ‘has issued a $205 million term loan under its Silvergate Exchange Network (SEN) Leverage program to MacroStrategy LLC.’
As per the agreement, MacroStrategy will use the loan proceeds to purchase bitcoins, pay fees, interest, and expenses related to the loan transaction, or for its or its parent company’s general corporate purposes.
SEN Leverage was launched in 2020 and provides institutional-grade access to capital through US dollar loans collateralized by bitcoin.
About the partnership, Saylor commented by saying,
“The SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in bitcoin.”
BTC Rally to Heat-Up?
Bitcoin’s upward momentum has been supported by institutions buying bitcoin, which has added to the much-needed buying pressure in the market. At the time of writing, bitcoin traded at $46,674.09.
The news of MicroStrategy buying BTC gave its trajectory a minor push as its prices went up by 1.31% on the daily chart. In March, BTC’s price reached $48,200, the highest level seen in 2022.
Part of the recent rally has been fueled by large institutions accumulating BTC. BTC buying by the Terra community also contributed to BTC’s current strength. As of April 1, the Terra community had bought 30,727 BTC to give a push to their stablecoin reserves.
If institutions continue to stir buying pressure for BTC in the market the king coin could see a decent push in the near term.
This article was originally posted on FX Empire
