MicroStrategy Announces Insanely Big Bitcoin Purchase

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As a seasoned researcher with over two decades of experience in the financial markets, I find the recent moves by MicroStrategy and Marathon Digital to be both intriguing and somewhat daring. Having witnessed the rise and fall of numerous market trends, I can’t help but see a hint of audacity in their approach.

In an astounding move, the business intelligence company MicroStrategy invested a staggering $4.6 billion in Bitcoin over just seven days.

The company that’s traded on the stock market purchased 51,780 Bitcoins, with each Bitcoin costing an average of approximately $88,627.

The accumulated Bitcoin that MicroStrategy currently owns has significantly increased to approximately 331,200 BTC, which equates to around $29.7 billion as of the current market prices.

Vetle Lunde of K33 Research has noted that the number of coins added by MicroStrategy over the past week has doubled the global BTC ETP inflow over the same period of time (25,993 BTC). 

The typical cost of a company’s purchases is quickly nearing $50,000, now at $49,874.

MicroStrategy shares are up a mere 0.17% in pre-market trading. 

Currently, the cost of Bitcoin has dropped below $90,000 following a peak of $92,142 during the day. Compared to its record high of $93,477 reached five days back, Bitcoin has decreased by 3.8%.

Copying MicroStrategy’s playbook 

Currently, MicroStrategy’s daring strategy of swapping debt for Bitcoin is growing in recognition. Notably, Bitcoin mining titan Marathon Digital (MARA) recently announced plans for a $700 million offering of convertible senior notes, aiming to fund future Bitcoin acquisitions.

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2024-11-18 16:42