MicroStrategy Keeps Buying Bitcoin, Adds Another $15M

MicroStrategy disclosed a $15 million bitcoin (BTC, -10.28%) purchase Thursday, buying 271 coins at a $55,387 average even as the crypto market raced lower.

The publicly trade business intelligence company has now spent $2.24 billion on bitcoin. It has purchased bitcoin in $15 million tranches at least once a month since March in accordance with CEO Michael Saylor’s sat-stacking treasury reserve policy.

This latest purchase comes as the leading cryptocurrency faces challenges from one of its most vocal corporate backers. Wednesday, Tesla CEO Elon Musk suspended the electric car-maker’s bitcoin payments policy citing environmental concerns. Bitcoin plunged to as low as $46,294.72 before recovering to about $50,000 where it currently trades, suggesting Saylor’s latest purchase preceded Wednesday’s news.

MicroStrategy’s stock price also took a hit in the wake of Musk’s announcement. It was down over 7% in pre-market trading Thursday.

MicroStrategy’s purchase also comes on the heels of signs of rising inflation in the U.S. Data released on Wednesday showed the U.S. consumer price index (CPI), rose 4.2% year-on-year in April, marking the fastest inflation rise in 12 years. Higher inflation will likely lead to higher rates. Higher rates could mean an end to the cheap money that has helped fuel the bitcoin bull run.

By Danny Nelson Via https://www.coindesk.com/microstrategy-keeps-buying-bitcoin-adds-another-15m