MicroStrategy Reaffirms Commitment to Bitcoin Accumulation as BTC Stalls

Updated:

MicroStrategy CEO Michael Saylor has asserted that his company does not intend to slow down its Bitcoin (BTC) purchasing spree anytime soon. The Bitcoin proponent made the assertions in a letter addressed to company stockholders on April 14, ahead of the Annual Meeting of Stockholders scheduled for May 22.

Saylor assured that the Nasdaq-listed corporation, which currently boasts the highest BTC holdings, continues to stack its BTC reserve and expand its service base for its software intelligence services.

In the address, the BTC bull described the firm’s Bitcoin strategy as “complementary to our analytics software and services business,” adding that it was a way to improve the growth of the firm’s customer base.

Along with bolstering its business strategy to see through its Intelligence Everywhere vision, the company also considers its strategy to acquire and hold BTC a significant success.

The intelligence software company began accumulating Bitcoin in August 2020, using its excess cash flow from operations. However, the company also uses proceeds from debt and equity to stack its BTC reserves. The company also graduated to using convertible note offerings, stock offerings, and crypto-collateralized loans.

MicroStrategy, along with its subsidiaries, currently holds a whopping 129,218 BTC on its balance sheet, with a total purchasing cost of $3.97 billion, giving its holdings an average value of $30,700 per coin.

Key Bitcoin Levels to Watch — April 17

Bitcoin appears to be bracing for a bearish continuation over the coming days, as it failed to reclaim the $41,000 barrier over the weekend. The benchmark cryptocurrency has, however, formed a bearish flag over the past few days, and faces the real possibility of plummeting to the $39,000 low.

Studio Project 65
BTCUSD – 4-Hour Chart on Gemini. Source: TradingView.

That said, Bitcoin’s only chance to avert this bearish move is to record a break above the $41,000 pivot top over the next 24 hours, which should stall the bearish pressure and give bulls a window to push for the $43,000 barrier again. The coming hours will play a critical role in the crypto market’s trading bias over the coming week.

Meanwhile, my resistance levels are at $41,000, $42,000, and $43,000, and my key support levels are at $40,000, $39,000, and $38,000.

Total Market Capitalization: $1.88 trillion

Bitcoin Market Capitalization: $769.3 billion

Bitcoin Dominance: 40.8%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.