MicroStrategy Acquires $623 Million Worth of Bitcoin
MicroStrategy, the worldโs largest corporate holder of Bitcoin (BTC), has recently added 9,245 BTC to its holdings. The purchase was made at an average price of $67,382 per coin, bringing MicroStrategyโs total Bitcoin holdings to 214,246 BTC. This means that the company now owns over 1% of the total supply of Bitcoin that will ever exist. The total cost of MicroStrategyโs Bitcoin book is $7.53 billion, with an average purchase price of $35,160 per coin.
This recent acquisition demonstrates MicroStrategyโs continued commitment to Bitcoin as a long-term investment strategy.
Michael Saylorโs Bitcoin Strategy
The co-founder and chairman of MicroStrategy, Michael Saylor, has been vocal about his belief in the long-term potential of Bitcoin. He sees it as a digital property that should be held for many years to come. Saylor believes that Bitcoin will eventually surpass gold in terms of market share and that Bitcoin spot ETFs will become as popular as gold ETFs.
Despite the recent dip in Bitcoinโs market price, Saylor remains confident in his investment. He stated in a recent interview with CNBC that he doesnโt plan to realize any profit from his Bitcoin holdings for a very long time, if ever.
MicroStrategyโs Recent Purchase
The recent purchase by MicroStrategy was well above the companyโs existing book cost and also higher than Bitcoinโs current market price. However, despite the dip in price, MicroStrategyโs overall investment is still profitable, with $6.1 billion in unrealized profit.
Saylor has compared Bitcoin to a billion-dollar building in cyberspace and encourages people to hold it for 100 years. He believes that Bitcoin is not just a speculative investment, but rather a long-term hold that can compete with other risk assets and traditional retirement income sources.
MicroStrategyโs Advantage
MicroStrategyโs ability to acquire large amounts of Bitcoin is due in part to its access to cheap debt. The company recently completed a $603.75 million offering of convertible notes, which provided the funds for its latest Bitcoin purchase. This advantage, coupled with MicroStrategyโs profitable software business, allows the company to increase its Bitcoin holdings over time and provide more value to its investors.
Investors in MicroStrategyโs stock, MSTR, have benefited from the companyโs Bitcoin strategy. MSTR shares are up 80% year to date, outperforming BTCโs 41% increase over the same period.
Hot Take: MicroStrategy Continues to Bet Big on Bitcoin
MicroStrategyโs latest acquisition of $623 million worth of Bitcoin reinforces the companyโs commitment to the cryptocurrency. With over 1% of the total supply of Bitcoin now in its possession, MicroStrategy remains one of the largest institutional holders of BTC.
Michael Saylorโs bullish stance on Bitcoin and his belief in its long-term potential further solidify MicroStrategyโs position as a leading player in the crypto market. The companyโs access to cheap debt and profitable software business give it a unique advantage in acquiring more Bitcoin over time.
As the market continues to fluctuate, MicroStrategyโs unwavering confidence in Bitcoin sets it apart from other institutional investors. Time will tell if their bold bet on Bitcoin pays off in the long run.
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