MicroStrategy Expands Bitcoin Holdings With 21,550 BTC Purchase For $2.1 Billion

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As a seasoned researcher with a keen eye for financial trends and a soft spot for disruptive technologies, I find MicroStrategy’s Bitcoin strategy intriguing. Having closely followed the crypto market since its inception, I have witnessed both its tumultuous lows and exhilarating highs.

American business intelligence company, MicroStrategy, has increased its Bitcoin investments as per its corporate treasury plan. They recently acquired 21,550 Bitcoins, valued at around $2.1 billion.

MicroStrategy Unfazed by Bitcoin’s Historic Price Surge

Today, a publicly-listed corporation announced that it has bought more than 21,500 Bitcoins. This purchase was made as Bitcoin surpassed $100,000 for the first time ever, causing the overall value of all cryptocurrencies to reach record highs.

As stated in a document submitted to the U.S. Securities and Exchange Commission (SEC), the acquisition was financed by the money received from selling company shares, amounting to approximately $2.13 billion. This transaction took place between December 2nd and December 8th, with an average price of roughly $98,783 per BTC, accounting for fees and other expenses.

In a recent update on social media platform X, MicroStrategy’s CEO Michael Saylor announced that the company now owns a grand total of 423,650 Bitcoins. This massive acquisition cost the company a staggering $25.6 billion, with each Bitcoin being purchased at an average price of approximately $60,324.

Despite some investors showing hesitation to invest in Bitcoin due to its ongoing surge, Saylor remains unperturbed by the cryptocurrency’s rise. Earlier this year, Saylor expressed his intent to continue buying Bitcoin even if it reached record highs, stating that he would “keep on buying at the top forever.

I’m quite certain I’ll invest in a Bitcoin when its value reaches a million dollars per coin – probably spending about a billion dollars on Bitcoin every day at that point.

Significantly, MicroStrategy currently holds approximately 2.02% of the total available Bitcoin supply, which is 21 million coins, amounting to 423,650 BTC. Lately, Saylor advocated for the U.S. government to consider Bitcoin as a replacement for gold. In his words, “The Bitcoin permabull” expressed:

Transform your gold reserves into Bitcoin. Liquidate all U.S. gold and invest in Bitcoin instead. This move will devalue the entire gold market, as our adversaries often store gold in their banks. Consequently, their assets could become worthless. In contrast, our wealth could surge to an astounding $100 trillion.

Fifth-Consecutive Week Of BTC Purchase

In the past five weeks, MicroStrategy has made five successive purchases of Bitcoin. Over this same timeframe, the value of Bitcoin increased by around 40%, and MicroStrategy’s shares (MSTR) experienced a rise of roughly 20%.

To date in 2021, MicroStrategy’s stock has skyrocketed by an impressive 520%, starting at $69 in January and reaching $388 currently. This phenomenal growth surpasses that of Bitcoin and the S&P 500, establishing MicroStrategy as a prominent company with significant holdings of Bitcoin among major corporations.

MicroStrategy’s successful Bitcoin investment approach has sparked interest globally, such as in Metaplanet, a Japanese startup investment firm that is considering adopting a similar strategy. Additionally, Saylor has attempted to persuade tech giant Microsoft to explore the possibility of including Bitcoin in their financial holdings.

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.

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2024-12-10 04:12