MicroStrategy’s Bitcoin holdings have reached a significant milestone following a $243 million investment to buy the dip. The company now holds over 450,000 Bitcoin (BTC), acquired for a total of $28.2 billion at an average price of $62,691.
The milestone was achieved after MicroStrategy purchased $243 million worth of BTC at an average price of $95,972, as announced by MicroStrategy founder and chairman Michael Saylor on January 13.
MicroStrategy made this purchase during a nearly weeklong correction period, starting from January 7, in which Bitcoin’s price dropped below the psychological mark of $100,000, according to data from Cointelegraph Markets Pro.
Crypto hedge funds have also taken advantage of this dip, resulting in a near seven-year low in Bitcoin exchange reserves on January 13. A diminishing Bitcoin supply on exchanges may indicate an upcoming price rally driven by a “supply shock,” where strong buyer demand meets a decreasing amount of BTC, leading to further price appreciation.
Bitcoin’s vulnerability to macroeconomic factors was evident when it surpassed the record high of $100,000 on December 6, 2024, a month after Donald Trump’s victory in the 2024 US presidential election. However, the positive news related to the upcoming Trump administration has already been priced into the market, leaving it susceptible to macro drivers, according to Bybit Research.
Bitcoin’s dip below $92,000 was primarily attributed to the stronger-than-expected Job Openings and Labor Turnover Survey (JOLTS) released on January 9, which reaffirmed the strength of the US labor market, according to the Bybit researchers.
Other analysts also believe that macroeconomic factors are the main cause of Bitcoin’s decline. Ryan Lee, chief analyst at Bitget Research, stated that Bitcoin’s dip is primarily due to strong US economic data that points to potential interest rate hikes, making cryptocurrencies less attractive as investments.
Despite concerns about interest rates, other companies are also buying the Bitcoin dip. On January 13, Nasdaq-traded Semler Scientific announced the purchase of 237 BTC worth $23.3 million at an average price of $98,267.