MicroStrategy purchases $15million of Bitcoin as Musk dumps market

Software company MicroStrategy has purchased an additional 271 Bitcoin for a nominal value of $15 million, according to announcement by the firm’s CEO Michael Saylor on Twitter.

The Bitcoin was purchased at $55,387, just hours before Tesla CEO Elon Musk caused a swift market correction by revealing that Tesla has stopped accepting Bitcoin as payment for its vehicles.

At the time of writing Bitcoin is trading at $49,697 having slumped to as low as $46,350 during the manic sell-off on Wednesday evening.

MicroStrategy now owns 91,850 Bitcoin with an average purchase price of around $24,403 after they started to purchase the asset in Q4 of last year.

The company’s share price, which has been closely correlated with the price of Bitcoin, is 3.5% down today as a result of the crypto sell-off. It is also 60.88% down from its all-time high of 1,319 that was printed on February 11.

MicroStategy’s business model is now focused solely on the sale of its software products, and its Bitcoin acquisiton strategy. It relies on persuading other companies and institutions to purchase Bitcoin to be held as a treasury asset instead of Bitcoin.

It held a Bitcoin conference in January, which preceded Tesla’s $1.5 billion buy of Bitcoin that skyrocketed above $40,000.

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