MicroStrategy buys the dip by investing $25 million in 660 Bitcoin

MicroStrategy, the renowned Bitcoin (BTC) investor, has revealed another major BTC purchase, making a total of 125,051 Bitcoin holding as of Monday.

MicroStrategy purchased 660 BTC for about $25 million in cash between December 30, 2021, and January 31, 2022, according to an official form submitted with the U.S. Securities and Exchange Commission (SEC) on Tuesday.

According to the report, the average BTC buying price was $37,865 per BTC, including fees and other costs. MicroStrategy held over $3.78 billion in BTC as of January 31, with an average purchase price of around $30,200 per BTC.

MicroStrategy has purchased an additional 660 bitcoins for ~$25.0 million in cash at an average price of ~$37,865 per #bitcoin. As of 1/31/22 we #hodl ~125,051 bitcoins acquired for ~$3.78 billion at an average price of ~$30,200 per bitcoin. $MSTRhttps://t.co/bF6VImC0Qy

— Michael Saylor⚡️ (@saylor) February 1, 2022

The continuous accumulation by MicroStrategy

The current Bitcoin purchase appears to be small in comparison to the company’s other BTC purchases. MicroStrategy reported two significant BTC purchases in December 2021, purchasing 1,434 BTC from November 29 to December 9 at an average price of $57,477 per BTC and then 1,914 BTC from December 9 to December 29 at an average price of $49,229 per BTC.

Previously, the company purchased 7,002 Bitcoin units at an average price of $59,187 per BTC from October 1 to November 29.

Despite a market dip in January, major Bitcoin investors such as the government of El Salvador continued to invest in BTC. El Salvador’s president, Nayib Bukele, said on January 21 that the Salvadoran government had purchased 410 bitcoins for $15 million, averaging $36,585 per bitcoin.

SEC questions company’s strategy

The latest report comes after the SEC purportedly rejected MicroStrategy’s Bitcoin accounting techniques, leading the company’s stock to drop in mid-January.

MicroStrategy’s reporting of data pertaining to BTC purchases based on non-Generally Accepted Accounting Principles (GAAP) was specifically questioned by the SEC. The authority claimed that MicroStrategy calculated statistics for its BTC purchases using non-GAAP methods that excluded the “impact of share-based compensation expense, impairment losses, and gains on the sale of intangible assets.”