MicroStrategy Holds Over $8 Billion in Bitcoin
MicroStrategy, led by Michael Saylor, now holds more than 189,150 Bitcoin, which is valued at over $8 billion as of December 27th. The company recently purchased an additional 14,620 Bitcoin at an average price of $42,110 per coin. This latest acquisition cost MicroStrategy approximately $615.7 million.
Investing in Bitcoin to Mitigate Inflation
In 2020, MicroStrategy began buying Bitcoin as a response to the global pandemic and to protect against the threat of inflation. Since then, the company has invested around $5.9 billion in Bitcoin. This investment strategy has proven successful, as MicroStrategy has made approximately $2 billion in profits from its BTC portfolio.
Bitcoin Investment Boosts MicroStrategy’s Stock
The decision to invest in Bitcoin has not only been profitable for MicroStrategy but has also had a positive impact on its stock. The company’s stock price has increased by over 300% in 2023 alone and was trading at $603.89 at the time of writing.
Potential Approval for Spot Bitcoin ETFs
Several financial institutions and asset managers, including BlackRock and ARK 21Shares, have submitted applications for a spot Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC). While it remains uncertain if these applications will be approved, there is speculation that spot BTC ETFs may finally receive approval in early January 2024.
The Significance of Spot Bitcoin ETF Approvals
Michael Saylor believes that if spot Bitcoin ETFs are approved, it could be a pivotal moment for both traditional finance and the crypto industry. Experts and speculators anticipate a decision on these ETFs will be made just a few months before Bitcoin’s halving event in April 2024.
Hot Take: MicroStrategy Continues to Accumulate Bitcoin, Hoping for Spot BTC ETF Approval
MicroStrategy, under the leadership of Michael Saylor, has demonstrated its strong conviction in Bitcoin as a store of value. With over $8 billion worth of BTC and ongoing purchases, the company is positioning itself to benefit from potential approval of spot Bitcoin ETFs. If these ETFs are approved, it could open the floodgates for traditional financial institutions and investors to gain exposure to Bitcoin. This development could have significant implications for the cryptocurrency market and further validate Bitcoin’s role as an asset class. All eyes will be on the SEC’s decision in early 2024 and its potential impact on the industry.
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