Bitcoin price is falling? Big Fish (MicroStrategy) will buy more

MicroStrategy dealing with, inter alia, investments in cryptocurrencies, earned over USD 2021 million in the first quarter of 100. Now it is taking advantage of the price drops Bitcoinby buying more coins for huge amounts. In recent days, it has spent another USD 25 million on the purchase of BTC.

MicroStrategy is a company operating since 1989. He mainly deals with the creation of advanced IT solutions: mobile software, applications and cloud services. For years, it has been investing financial surpluses in cryptocurrencies, and its boss and founder Michael saylor is a great enthusiast and propagator of blockchain technology.

Bitcoin (BTC) chart, H1 interval. Source: Binance.com

Bitcoin price is falling? We buy!

Fascination blockchainem and cryptocurrencies, however, is not just theorizing. The company invests boldly in this technology. He has been buying bitcoins for years, allocating a large part of his financial reserves to them. 

Over the past few weeks, it has seemed that the cryptocurrency will enter the mainstream for good, after the billionaire Elon Musk announced that Tesla cars will be available for purchase with Bitcoin, and the company itself has also invested in BTC. But Elon Musk wouldn't be himself if he hadn't made a fuss once again. After its declaration and purchase Tesla, the boom in the cryptocurrency market has accelerated. But when he announced that he was withdrawing from it, because he realized that handling transactions in BTC was energy-intensive and was causing environmental poisoning due to obtaining electricity from coal-fired power plants, the crypto market began a sharp correction.

Check it out: List of cryptocurrency exchanges 2021

But when many sell and accept a loss, the big fish do the exact opposite, following the principle: "buy while the blood is pouring." One of the biggest players in the cryptocurrency market is certainly just that microstrategy. And this company just announced that it has made two major purchases. It recently acquired 229 Bitcoins for $ 10 million. And just after it announced a week ago during the first wave of declines that it had bought 271 BTC for USD 15 million.

MicroStrategy already has 92 BTC, which it acquired for $ 2,251 billion at an average price of $ 24. It made its last purchases at an average price of USD 55 per BTC. On May 387, 19, you can buy Bitcoins for less than 2021. USD. Is Microstrategy still buying? We'll probably find out soon.

The banking sector uses more electricity than blockchain

Although the tweet and decision of Elon Musk shook the cryptocurrency market, experts do not leave a dry thread on the basis of this decision. At least the official ones. Especially since the Galaxy Digital report was published a week ago, entitled "On Bitcoin's Energy Consumption: A Quantitative Approach to a Subjective Question". Among other things, we read that the BTC network consumes an estimated 113,89 TWh per year. This includes not only transactions, but also the cost of mining by miners, handling pools or nodes that confirm compliance. Meanwhile, the gold trading system generates consumption ... 240,61 TWh per year, and the banking system even more: 263,72 TWh per year!

Michael Saylor made it clear that Elon Musk's decision should be treated rather as irony.

- “No additional energy is used in the Bitcoin transaction. In fact, its impact on the consumption of fossil fuels is beneficial for the environment. There is no more efficient technology for transforming energy into prosperity " - emphasizes Michael Saylor of MicroStrategy.

Who's right?

As usual in such cases - time will tell. 

One thing is certain: MicroStrategy has been doing great for years. Financial results for the first quarter of 2021 have just been announced. The company's revenues reach $ 122,9 million. They increased by 10,3% compared to the same period in the previous year. Gross profit was $ 100,4 million. During this period, the company had 91 BTC, worth more than $ 579 billion. In the first quarter of this year alone, it bought 5 BTC for USD 20 billion, an average of USD 857 per BTC. Micheal Saylor emphasized that the company will continue its strategy.