MicroStrategy Plans Another $400 Million Bitcoin Purchase as Price Eyes $20K-Retest

microstrategy buying more bitcoin

Jaipur (CoinChapter.com) — MicroStrategy has officially proved that “it is always a good time to buy bitcoin.” While BTC prices crashed more than 50%, CEO Michale Saylor sees it as an opportunity to buy more. Therefore, the firm has announced the issuance of $400 million worth of debt, with proceeds intended to the needful. But, amid rising chances of bitcoin’s fall to the $20,000 price level, is this move justified?

MicroStrategy Going Bitcoin Shopping Again

It is important to note that MicroStrategy (NASDAQ: MSTR) already has a little above 92,000 BTC in its stash. But apparently, boss Michael Saylor thinks it’s a great time to buy more bitcoins. Courtesy of the crash and low prices.

Just after making an appearance at the Bitcoin 2021 conference in Miami, Saylor and his company lost no time in announcing ” a private offering of $400M of senior secured debt.”

What this means is that MicroStrategy will basically borrow money to buy BTC. The company will offer senior secured notes due 2028 (the “notes”) worth $400 million to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to persons outside of the United States in compliance with Regulation S under the Securities Act.

This comes after even as the company continues to endure losses to the tune of $285 million on its bitcoin holdings. However, CEO Saylor shrugged off these negative numbers as he took a long-term stance on widespread adoption. In conversation with Max Keiser.

BTC Could Fall To $20,000; Will Saylor Still Play It Cool?

As per our latest bitcoin price analysis, the flagship cryptocurrency is trading within a bearish pennant structure. A price drop below the pattern will lead to BTC testing the $30,000 support. Anything lower would increase the possibility that BTC/USD tests $20,000.

Scott Minerd, CIO of financial services company Guggenheim Partners, is a bitcoin bull himself. But he is also of the opinion that BTC faces a high probability of revisiting the $20,000 level.

“When we get a risk-off moment, we could be seeing Bitcoin pull back to somewhere between $20,000 and $30,000.”

However, he added that these levels would serve as good entry points for long-term investors. With such a probability of BTC price dropping, the question remains: Will the MicroStrategy CEO still play it cool?