MicroStrategy Acquires $615M in Bitcoin (BTC)
MicroStrategy, led by Chairman Michael Saylor, recently announced a substantial addition to its Bitcoin holdings.
The company acquired over 14,000 Bitcoins at an average price of $42,110 each, totaling approximately $615.7 million; MicroStrategy’s move reflects a strategic reinforcement of its commitment to Bitcoin. With this purchase, their total Bitcoin stash now amounts to 189,150 BTC, procured for about $5.9 billion, averaging at $31,168 per Bitcoin—an extensive investment underscoring their confidence in Bitcoin’s role within their treasury reserve.
This notable procurement follows their previous acquisition of 155 BTC last month, solidifying MicroStrategy’s position as the leading private entity holding a significant quantity of Bitcoins on their balance sheet.
Remarkably, MicroStrategy’s stock has outpaced Bitcoin’s performance in 2023, surging by 316% compared to Bitcoin’s 160% increase since the year commenced.
Anticipation looms within the crypto sphere for the impending launch of the inaugural spot Bitcoin ETF in the US, expected by January 10. Questions arise about the potential impact of this ETF launch on MSTR, to which Saylor confidently asserts MicroStrategy’s unique standing as an operational entity, distinct from fee-charging, unleveraged ETFs.
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Saylor draws a comparison between MicroStrategy and an airline, highlighting the company’s capacity to generate additional BTC through profit and loss or capital market activities. This analogy contrasts with ETFs, which he likens to shipping lines, emphasizing MicroStrategy’s performance and leverage sans associated fees.
Currently hovering between $42,000-$44,000, Bitcoin has seen a recovery to $43,000 from a significant earlier dip. Breaking the upper resistance could potentially propel BTC’s price toward the $47,000-$50,000 range.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
