Financial Insights That Matter
MicroStrategy, a US-based business intelligence firm, has expanded its Bitcoin (BTC) holdings as part of its corporate treasury strategy. The company announced its latest purchase of 21,550 BTC, worth approximately $2.1 billion.
MicroStrategy Unfazed by Bitcoin’s Historic Price Surge
In an official announcement today, the publicly-traded company had acquired an additional 21,550 BTC. This purchase comes as Bitcoin crossed the $100,000 mark for the first time in its history, pushing the total cryptocurrency market cap to unprecedented levels.
According to a filing with the US Securities and Exchange Commission (SEC), the acquisition was funded through proceeds from issuing and selling company shares, totaling $2.13 billion. The purchase was executed between December 2 and December 8 at an average price of $98,783 per BTC, including fees and expenses.
Michael Saylor, CEO at MicroStrategy, in an X post stated that the company now holds a total of 423,650 BTC for a total acquisition cost of $25.6 billion, at an average price of $60,324 per BTC.
While many investors may have second-thoughts about buying BTC amid its historic run, Saylor seems unfazed by the digital asset’s ascent. Earlier this year, Saylor said in an interview that he would be “buying the top forever.” He stated:
I’m confident I’ll be buying Bitcoin at $1 million per coin — likely around $1 billion worth of Bitcoin per day at that price.
Notably, with 423,650 BTC on its balance sheet, MicroStrategy now controls just over 2% of Bitcoin’s total capped supply of 21 million coins. Most recently, Saylor urged the US government to replace gold with BTC. The Bitcoin permabull said:
Dump your gold. Sell all the US gold and buy Bitcoin. You will demonetize the entire gold asset class. And our enemies hold gold in their banks, so their assets would go to zero. Our assets would go to $100 trillion.
Fifth-Consecutive Week Of BTC Purchase
MicroStrategy’s latest acquisition marks its fifth consecutive Bitcoin purchase in as many weeks. During this period, BTC’s price has climbed by 40%, while MicroStrategy’s stock (MSTR) has risen by approximately 20%.
Year-to-date, MicroStrategy’s stock has soared by 520%, climbing from $69 on January 1 to $388 at the time of writing. This performance has outpaced Bitcoin and the S&P 500, solidifying the company’s position as a leading corporate BTC holder.
MicroStrategy’s highly profitable BTC strategy has also inspired companies worldwide, including Japan-based early-stage investment firm Metaplanet. Further, Saylor has also tried to convince tech juggernaut Microsoft to consider adding BTC to its balance sheet.
That said, long-time gold bug Peter Schiff is not yet sold on BTC, saying that MicroStrategy’s Bitcoin bet will likely backfire. BTC trades at $100,192 at press time, down 0.1% in the past 24 hours.
Featured Image from Unsplash.com, Charts from Yahoo! Finance and TradingView.com
#1a73e8;">Boost Your Financial Knowledge and Achieve Stability
Discover a growing online community dedicated to delivering financial news, tips, and strategies designed to help you manage money effectively, save smarter, and grow your investments with confidence.
#1a73e8;">Top Financial Tips for Saving and Investing
- Personal Finance Management: Master the art of budgeting, expense tracking, and building a strong financial foundation.
- Investment Opportunities: Stay updated on market trends, learn about stocks, and explore secure ways to grow your wealth.
- Expert Money-Saving Advice: Access proven techniques to reduce expenses and maximize your financial potential.