Bitcoin Staggers as MicroStrategy Acquired $6 Million Worth of BTC
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Statistics show that with its latest purchase, the institutional investor now holds 0.62% of the 21 million BTC supply cap. With its recent purchase, MicroStrategy now holds 130,000 BTC, one of the largest BTC reserves on earth.
MicroStrategy has purchased an additional 301 bitcoins for ~$6.0 million at an average price of ~$19,851 per #bitcoin. As of 9/19/22 @MicroStrategy holds ~130,000 bitcoins acquired for ~$3.98 billion at an average price of ~$30,639 per bitcoin.https://t.co/5kYW98ij4I
— Michael Saylor⚡️ (@saylor) September 20, 2022
However, the company still suffers a huge drawdown on its total investment in dollar terms, considering its cumulative average purchase currently sits at $30,639 per BTC, representing a 38% drawdown based on the current exchange rate of roughly $19K. Based on the Securities and Exchange Commission filing, the firm’s 130,000 BTC holding sits at approximately $3.98 billion. This puts MicroStrategy at a paper loss of over $1 billion.
The official SEC filing also revealed that the company made the BTC purchase using “excess cash.” This move also comes after Saylor stepped down as CEO of the company to focus on making more Bitcoin investments.
Other behemoth institutional holders of Bitcoin include the crypto exchange Bitfinex, which holds 170,000 BTC, and Binance, with 125,000 BTC in reserve.
Key Bitcoin Levels to Watch — September 20
After crashing towards the $18K low on Sunday, Bitcoin managed a small rebound to the $19.6K pivot base yesterday. However, the benchmark cryptocurrency lacked the follow-up support to break past the barrier and into the $20K range.
As a result, BTC returned to the sub-$19K mark in the North American session on Tuesday, where it currently hovers around. With the US Fed expected to deliver nothing less than 75 basis points in its meeting tomorrow, BTC could suffer an additional slump. However, if the rate hike has already been priced in, the benchmark cryptocurrency’s momentum should remain unchanged or record an aggressive upward rally.
Meanwhile, my resistance levels are at $19,600, $20,000, and $20,500, and my key support levels are at $19,000, $18,500, and $18,000.
Total Market Capitalization: $930.6 billion
Bitcoin Market Capitalization: $365.6 billion
Bitcoin Dominance: 39.2%
Market Rank: #1
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