MicroStrategy Strengthens Its Bitcoin Holdings
MicroStrategy, a prominent business intelligence company in the United States, has further solidified its Bitcoin (BTC) holdings as part of its strategic approach to corporate treasury management. The company recently announced an acquisition of 21,550 BTC, valued at roughly $2.1 billion, showcasing its commitment to the Bitcoin investment strategy.
MicroStrategy’s Bold Move Amidst Bitcoin’s Price Milestone
In a recent revelation, the publicly-listed MicroStrategy disclosed that it had acquired an additional 21,550 BTC. This strategic move coincides with Bitcoin’s historic surge past the $100,000 threshold, propelling the overall cryptocurrency market capitalization to new heights.
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As per a submission to the US Securities and Exchange Commission (SEC), this acquisition was financed through proceeds from the issuance and sale of company shares, amassing a total of $2.13 billion. The transaction was conducted between December 2 and December 8, with an average purchase price of $98,783 per BTC, inclusive of all associated fees and expenses.
Michael Saylor, the CEO of MicroStrategy, communicated through a social media post that the firm now possesses a cumulative total of 423,650 BTC, acquired at an aggregate cost of $25.6 billion, with an average acquisition price of $60,324 per BTC.
Unwavering Confidence in Bitcoin’s Potential
Despite the rapid rise in Bitcoin’s value, which might deter some investors, Saylor remains unwavering in his confidence in the digital asset’s potential. Earlier this year, he indicated his intent to continually invest in Bitcoin, irrespective of its price fluctuations. He expressed his conviction, stating:
“I am confident that I will continue purchasing Bitcoin even if it reaches $1 million per coin — potentially acquiring about $1 billion worth of Bitcoin daily at that valuation.”
With its significant holdings of 423,650 BTC, MicroStrategy now controls just over 2% of Bitcoin’s total supply, capped at 21 million coins. In a recent statement, Saylor encouraged the US government to consider Bitcoin as a valuable asset over gold, suggesting:
“Abandon gold. Sell all US gold reserves and invest in Bitcoin. This move could potentially demonetize the entire gold asset class, affecting countries that hold gold as their reserves, while significantly enhancing the value of our Bitcoin assets.”
Consistent Bitcoin Acquisition Over Weeks
MicroStrategy’s recent purchase signifies its fifth consecutive week of acquiring Bitcoin, reflecting a consistent strategy during a period where BTC’s value has risen by 40%. Concurrently, MicroStrategy’s stock (MSTR) has appreciated by approximately 20%.
Year-to-date, the company’s stock has surged by an impressive 520%, climbing from $69 at the beginning of the year to $388 as of the latest update. This performance has surpassed both Bitcoin and the S&P 500, reinforcing MicroStrategy’s status as a leading corporate Bitcoin investor.
MicroStrategy’s successful Bitcoin strategy has inspired other global entities, such as Japan-based investment firm Metaplanet. Additionally, Saylor has actively encouraged tech behemoth Microsoft to integrate Bitcoin into its corporate financial strategy.
Nonetheless, long-standing gold advocate Peter Schiff remains skeptical about Bitcoin’s prospects, suggesting that MicroStrategy’s aggressive Bitcoin investment may not yield the expected returns. As of now, Bitcoin trades at $100,192, showing a slight decrease of 0.1% over the past 24 hours.
With MicroStrategy’s ongoing commitment to Bitcoin, the company’s strategic decisions continue to influence both the cryptocurrency market and corporate treasury management practices globally.
