MicroStrategy Increases BTC Holdings with $155 Million Purchase
MicroStrategy’s executive chairman and co-founder, Michael Saylor, recently announced that the company has acquired an additional 3,000 Bitcoins, worth $155 million. This brings MicroStrategy’s total BTC holdings to 193,000. The purchase was made ahead of the Bitcoin halving and the accumulation of Bitcoins by spot Bitcoin ETFs.
MicroStrategy’s Bitcoin Acquisition Details
In a filing with the U.S. Securities and Exchange Commission, MicroStrategy revealed that it purchased almost 3,000 Bitcoins for approximately $155.4 million in cash. The acquisition took place between February 15 and February 25, 2024, at an average price of around $51,813 per Bitcoin. MicroStrategy now holds a total of 193,000 BTCs.
Michael Saylor emphasized that these BTCs were acquired at an average price of $31,544 per Bitcoin, totaling nearly $6.09 billion.
MicroStrategy’s Confidence Amidst Bitcoin ETF Concerns
Despite concerns about the potential negative impact of Bitcoin ETFs on MicroStrategy’s stock (NASDAQ: MSTR), Michael Saylor remains confident. He stated that MicroStrategy stands apart from ETFs because it is an operating company rather than a fund. Additionally, unlike ETFs which charge fees and are unleveraged, MicroStrategy holds its BTC assets without any leverage.
MicroStrategy entrusts 98% of its BTC holdings to Fidelity Custody for secure asset management. It also diversifies its asset management and security by utilizing Coinbase Prime.
MSTR Stock Performance and BTC Price
The announcement of MicroStrategy’s latest Bitcoin purchase has positively impacted its stock price. Currently trading at $699.2, MSTR stock has gained 1.71% in pre-market hours and is likely to surpass $700 once again.
MicroStrategy’s stock price has experienced significant growth due to the rally in Bitcoin prices during 2023 and 2024. In just a month, MSTR stock has increased by 39%, and over the course of a year, it has risen by over 160%. Since the beginning of 2023, the stock has soared by an impressive 316%.
As for Bitcoin’s price, it recently rebounded from a 24-hour low of $50,931 and is currently trading at $51,410. The trading volume has also seen a 10% increase in the last 24 hours, indicating rising interest among traders.
Hot Take: MicroStrategy Continues to Strengthen Its BTC Holdings
MicroStrategy’s recent purchase of an additional $155 million worth of Bitcoins demonstrates its commitment to strengthening its BTC holdings. With a total of 193,000 BTCs now in its possession, MicroStrategy is well-positioned for the upcoming Bitcoin halving and the increasing accumulation of Bitcoins by spot Bitcoin ETFs.
Despite concerns about the potential impact of Bitcoin ETFs on MicroStrategy’s stock, Michael Saylor remains confident. The company’s status as an operating company and its unleveraged BTC holdings set it apart from ETFs that charge fees.
The positive impact of MicroStrategy’s BTC acquisitions is reflected in its stock performance. MSTR stock has experienced significant growth and continues to rally. With a current trading price above $700, it is clear that investors have confidence in MicroStrategy’s Bitcoin strategy.
Bitcoin’s price also shows resilience and continues to attract traders’ interest. Despite recent fluctuations, the rebound from a 24-hour low indicates a strong market sentiment and potential for further growth.
By
By
By
By
By