MicroStrategy purchases Bitcoin worth $10 million amid crypto selloff

MicroStrategy purchases Bitcoin worth $10 million amid crypto selloff
Michael Saylor's Bitcoin-backed tech firm MicroStrategy Inc. bought another 480 coins worth about $10 million at the height of the crypto market collapse. The firm purchased the coins between May 3 and June 28 for about $20,817 each, according to paperwork filed with the US Securities and Exchange Commission Wednesday. 
Bitcoin was trading close to $38,000 on May 3, hovering at about $20,000 from June 14 until June 28, implying the bulk of MicroStrategy’s purchases would have taken place over these last two weeks.
The acquisition represents MicroStrategy’s smallest Bitcoin buy in over a year. Its most recent purchase was nearly 90 days ago, on April 5, representing the longest stretch between purchases since the company embarked on its Bitcoin buying strategy. As of June 28, the company holds about 129,699 Bitcoin bought for about $3.98 billion, or $30,664 per coin, according to the filing. 
The Tysons Corner, Virginia-based enterprise software maker is expected to reveal a significant financial hit when it releases its second quarter 10-Q this summer, given its enormous exposure to the bellweather token, which has more than halved in value this year. 
Still, CEO Saylor is bullish on the future of Bitcoin and said the firm is well-positioned for when the markets turn around, in an interview. 
Shares of MicroStrategy Inc. have been hit hard this year as its once-winning approach of being a tech company that also holds billions of dollars in Bitcoin sends investors rushing for the exit. Under Chief Executive Officer Michael Saylor, MicroStrategy had spent about $4 billion on tokens as of March 31.
Meanwhile, companies like Block Inc. (formerly Square) and Tesla Inc. that have invested in Bitcoin also face potential losses this quarter, while the recent selloffs in Bitcoin and its peers could deter others from investing in the digital-asset space.
Cryptocurrencies have suffered this year amid Federal Reserve rate hikes and stubbornly high inflation. After crypto’s last two-year hibernation ended in 2020, the sector spiked to around $3 trillion in total assets last November, before plunging to less than $1 trillion. The collapse of the Terra/Luna ecosystem and the continued concern about hedge fund Three Arrows Capital Ltd. further rattled investors.