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16 Tweets by MicroStrategy CEO and USD 5B in Bitcoin, How Has BTC Reacted?


Supply: adobe/brandgraphics

MicroStrategy, the US software program firm led by the outstanding bitcoin (BTC) bull Michael Saylor, has since August of 2020 been on a bitcoin shopping for spree like nothing the world has ever seen. However how has the worth of the primary cryptocurrency reacted to the large purchases? We took a glance to search out out.

As reported on Monday this week, MicroStrategy is once more in the information after it introduced its newest buy of one other BTC 5,050, which the CEO stated was acquired at a median value of USD 48,099.

Up to now, MicroStrategy’s bitcoin purchases have totaled BTC 114,042, price greater than USD 5.47bn at present costs. And according to Bloomberg, MicroStrategy’s bitcoin holdings now even “dwarf the normal company treasuries of most members of the S&P 500 Index.”

The cash held by MicroStrategy have been accrued over numerous separate purchases, made in market situations starting from these in September final 12 months when BTC was beneath USD 16,000, to purchases made across the peak of this 12 months’s bull market at over USD 64,000.

BTC value in the previous 12 months:
 

Supply: coingecko.com

So, beginning with the primary buy final 12 months, let’s see what has occurred.

(Worth modifications are measured from the date and time of the announcement per Michael Saylor’s tweets).

1. August 11, 2020

MicroStrategy pronounces that it has made a primary buy of BTC 21,454 for USD 250m and that it “adopts bitcoin as main treasury reserve asset” for the corporate to carry. 

Regardless of being down on the day of the announcement, the bitcoin value rose by greater than 8% over the six subsequent days to a peak of about USD 12,300.

Change in 24 hours: -2%

2. September 15, 2020

The corporate pronounces that it has acquired a further 16,796 bitcoin for a complete quantity of USD 175m.

This time, bitcoin traded up by about 3% on the day of the information, and continued to rise by one other 3%-4% over the following 5 days earlier than a brief selloff occurred.

Change in 24 hours: +3%

3. December 4, 2020

MicroStrategy pronounces the acquisition of BTC 2,574, purchased for an aggregated quantity of USD 50m. 

Following the announcement, BTC noticed blended value motion over the following week. Nonetheless, the announcement got here after a rally that had already taken the worth of bitcoin up 82% because the firm’s earlier buy.

Change in 24 hours: +1%

4. December 21, 2020

MicroStrategy stated it has bought one other BTC 29,646 for a complete quantity of USD 650m.

The bitcoin value noticed a direct spike larger following this buy announcement, which was additionally adopted by steadily rising costs over the following few days. The announcement marked MicroStrategy’s largest buy thus far in phrases of the quantity bitcoin acquired.

Change in 24 hours: +5%

5. January 22, 2021

The corporate introduced the acquisition of BTC 314 for USD 10m.

Bitcoin traded up by about 4% in the eight hours following the announcement, however went right into a selloff later in the day that finally introduced the worth decrease than it was earlier than the announcement.

Change in 24 hours: -1.4%

6. February 2, 2021

The corporate pronounces it has bought BTC 295 for a complete of USD 10m.

This time, bitcoin was roughly unchanged for the primary 5 hours after the announcement. After that, nevertheless, the coin entered a bull-run that over the following few weeks introduced it to its all-time excessive of over USD 64,000.

Change in 24 hours: +5%

7. February 24, 2021

MicroStrategy introduced the acquisition of one other BTC 19,452 BTC for USD 1.026bn.

This announcement marked MicroStrategy’s largest buy announcement thus far in US greenback phrases, with over a billion {dollars} price of bitcoin acquired. Regardless of this, bitcoin’s preliminary response after the tweet was printed was to commerce decrease, earlier than a slight restoration began over the following few hours. Over the following few days, the worth additionally traded largely decrease, after having just lately dipped beneath the USD 50k mark.

Change in 24 hours: +1%

8. March 1, 2021

MicroStrategy says it has purchased one other BTC 328 for a complete of USD 15m.

On at the present time, bitcoin traded larger each over the short- and long-term after the announcement, sending it north of USD 60,000 inside 10 days of the announcement.

Change in 24 hours: +2%

9. March 5, 2021

MicroStrategy introduced the acquisition of BTC 205 for USD 10m.

The day marked the start of a week-long bull-run for bitcoin, with the worth transferring larger for seven consecutive days. In whole for the week, the worth moved up by almost 27% to over USD 61,000. 

Change in 24 hours: -0.7%

10. March 12, 2021

MicroStrategy pronounces that 262 extra bitcoins have been bought for USD 15m.

Bitcoin traded larger each in the hours instantly following the announcement, in addition to on the following day.

Change in 24 hours: +6%

11. April 5, 2021

The corporate says it has acquired BTC 253 for USD 15m.

Following this announcement, bitcoin traded down briefly, earlier than finally transferring larger to its all-time excessive of over USD 64,000 inside 9 days. 

Change in 24 hours: +1%

12. Might 13, 2021

The corporate introduced the acquisition of BTC 271 for USD 15m.

Regardless of a quick transfer larger, bitcoin was at this level already breaking down from its uptrend main as much as April’s all-time excessive. Saylor was nonetheless shopping for the dip, whereas bitcoin ended up falling by greater than 25% over the following six days.

Change in 24 hours: +1%

13. Might 18, 2021

The corporate stated it has purchased BTC 229 for USD 10m.

Nonetheless in the center of its Might selloff, this comparatively small MicroStrategy’s bitcoin buy was not sufficient to alter the course of the market, which was transferring down sharply.

Change in 24 hours: -24%

14. June 21, 2021

MicroStrategy on at the present time stated it has purchased BTC 13,005 for USD 489m.

This announcement from Michael Saylor got here as bitcoin had already traded decrease for a number of days. And though the instant response was an additional selloff, the worth ranges right here had been near bitcoin’s backside to this point in 2021 of round USD 30,000.

Change in 24 hours: -8%

15. August 24, 2021

The corporate introduced that it had bought BTC 3,907 for a complete of USD 177m through the interval from July 1 to August 23 this 12 months.

The bitcoin market moved largely decrease over the following few hours and days till the top of the month.

Change in 24 hours: -3%

16. September 13, 2021

The corporate stated that it bought 5,050 extra BTC for USD 243m.

Coinciding with the broadly (*16*) Walmart pretend information report, the bitcoin value moved up sharply inside just a few hours of Saylor’s announcement earlier than it once more noticed a good greater crash. Nonetheless, the market was nonetheless up by almost 7% inside two days of the announcement.

Change in 24 hours: +4%

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Primarily based on what we now have seen above, it appears clear that buying and selling purely based mostly on Michael Saylor’s bitcoin buy bulletins is a futile technique.

In actuality, it’s extraordinarily troublesome to say precisely what’s driving a big and unstable market like bitcoin over the brief time period, even when we have a look at the hours instantly following main bulletins like these from MicroStrategy.

Over the long-term, nevertheless, there’s little doubt that MicroStrategy is contributing to the success of bitcoin, and that it has taken a large quantity of cash off the market. Because of this, there are even fewer cash round for the remainder of us to chase after.

Michael Saylor and his firm seems to be very sturdy holders. However provided that MicroStrategy nonetheless has not been via a drawdown in value just like the one we noticed through the 2018 bear market, solely time will inform simply how sturdy of a holder Michael Saylor actually is.

In June, the corporate itself discussed two eventualities once they may promote a few of their BTC:

  • They might promote bitcoin in future intervals as wanted to generate money for treasury administration and different normal company functions.
  • Additionally, if their enterprise is just not in a position to proceed to generate money circulate from operations in the long run adequate to service their debt and make mandatory capital expenditures, they could be required to “undertake a number of alternate options, equivalent to promoting bitcoin or different property” amongst different alternate options.

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Be taught extra: 
This Is When MicroStrategy Might Sell Bitcoin According to Arthur Hayes
Fed May Have Indirectly Invested In MicroStrategy’s Bitcoin Drive

MicroStrategy CEO On Buying Bitcoin While Trillions ‘Melting’ In Treasuries

– This Is How Musk’s and Saylor’s Tweets Steer Bitcoin Price
Bitcoin Mega Bull MicroStrategy CEO Gives Hope To Ethereum, Altcoins



Written by CryptoMoonPicks

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