MicroStrategy just bought another 10,107 Bitcoin (BTC) today for approximately $1.1 billion at an average price of $105,596 per BTC as Michael Saylor, founder of MicroStrategy, announced on his X account. With this purchase, the company’s total ownership now stands at 471,107 BTC.
MicroStrategy’s impact on BTC price
As of January 26, 2025, the company has generated an annualized return of 2.90% year-to-date. It is a known fact that a company’s acquisition of Bitcoin often results in the price of the token rising.
It has also been noted that MicroStrategy usually makes purchases on Mondays, and today was no different. Today’s purchase resulted in a significant rise in the price of the token. Earlier today, prices fell from the $105,000 level (on Sunday, January 26) and fell below the $100,000 level. The lowest price recorded today was around $98,000. However, after the company announced its latest acquisition, Bitcoin prices rebounded, rising 1.4% within an hour and crossing the $100,000 threshold once again.
Enhancing Bitcoin market dynamics
MicroStrategy’s business model indicates its confidence in the long-term value of the asset. This latest purchase indicates its position as a leader in corporate BTC holders but also indicates the company’s influence on the market price of the token.
The rise in the price of the token following the announcement of the purchase also indicates a direct relationship between the company’s purchasing activity and the short-term performance of the Bitcoin market. Such moves by institutional bodies not only ensure acceptance of Bitcoin as a reliable store of value, but also increase investor confidence especially when there is expected high volatility.
With Bitcoin regaining momentum and crossing the $100,000 mark once again, MicroStrategy’s acquisition on Monday always sets a positive tone for the market for the week ahead.
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