Bitcoin News

MicroStrategy Buys an Additional 6,455 Bitcoin ($BTC), Pays off Silvergate Loan

MicroStrategy, a Nasdaq-listed business intelligence firm, has purchased an additional 6,455 Bitcoin ($BTC) at an average price of $23,238 per coin over the last five weeks, and has used BTC to pay off the remaining principal on its $205 million loan from Silvergate Bank.

The loan was obtained last year, and as part of its repayment, the business intelligence firm received 34,619 BTC held as collateral. The newly added BTC cost the company around $150 million, indicating that it is still amassing the flagship cryptocurrency.

The addition of more Bitcoin brings MicroStrategy’s total holdings to 138,955 coins, which were purchased at an average price of $29,817 each and are currently worth approximately $3.88 billion.

MicroStrategy founder Michael Saylor revealed on social media that the loan with Silvergate was repaid at a 22% discount, and the firm’s BTC holdings were acquired for a total of $4.14 billion.nMicroStrategy also revealed that it raised $339.4 million this year through the sale of its shares, which it used to repay the loan from Silvergate Bank. The company’s decision to use BTC as collateral for the loan was widely interpreted as evidence of its belief in the digital asset’s long-term potential.

According to CryptoGlobe, a top cryptocurrency analyst who gained a large social media following after correctly forecasting bitcoin’s 84% drop throughout that year, from over $19,000 to a little more than $3,000 in a year-long bear market, has suggested through two charts that Bitcoin could reach $150,000 by 2025.

Peter Brandt, one of the world’s most respected classical chartists, shared charts with his nearly 700,000 Twitter followers that suggested $BTC is forming an inverse head and shoulders pattern, which could push $BTC to $30,000 by the second quarter of this year.

The opposite of the standard head and shoulders pattern is an inverse head and shoulders pattern. It is used to forecast downtrend reversals. When the price of a security reaches a low point, rises, falls below the previous low point, then rises again, and finally falls a third time but not as low as the second trough, the pattern is identified.

According to Investopedia, after the third trough, the price moves upward towards the resistance level at the top of the previous troughs.

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