Microstrategy Increases Its Bitcoin Portfolio
Microstrategy, a leading software intelligence firm listed on Nasdaq, has boosted its cryptocurrency reserve. As per the latest reports, Microstrategy acquired an additional 14,620 bitcoins. The purchasing amount stands approximately at $615.7 million. This recent acquisition escalates the total count of bitcoins held by the company to 189,150. These coins have been bought for nearly $5.9 billion, with a mean price of $31,168 per bitcoin.
The company’s Executive Chairman, Michael Saylor, interprets the inception of spot bitcoin exchange-traded funds (ETFs) as perhaps the most significant development in Wall Street over the past 30 years.
189,150 Bitcoin Now Owned By Microstrategy
Michael Saylor, the Executive Chairman of Microstrategy, recently updated the market about the company’s latest acquisition of bitcoin. In the addition to the company’s hoard, 14,620 bitcoins were bought at an average cost of $42,110 per bitcoin. Therefore, as of December 26, 2023, Microstrategy holds a total of 189,150 bitcoins, bought for an approximate amount of $5.9 billion at an average price of $31,168 per bitcoin.
As stated in Microstrategy’s filing with the U.S. Securities and Exchange Commission (SEC), the extra bitcoins were bought during the span between November 30 and December 26.
Since adopting the bitcoin strategy on August 10, 2020, Saylor has noted that the price of BTC has experienced a significant rise of 253%. During the same period, S&P 500 saw a humble rise of 40%, while Nasdaq went up by 35%. Interestingly, gold faced a standstill in price change, silver saw a decline of 14%, and bonds dipped sharply by 18%.
Long-term value maximization for shareholders has been the main focus of the bitcoin strategy of Microstrategy. The firm views BTC as a reliable store of value with greater long-term appreciation potential than holding cash.
In a recent talk, Saylor stressed that Bitcoin symbolized a digital transformation of capital, which people are starting to accept. They then realize that they are underallocated.
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Frequently asked Questions
1. Why has MicroStrategy increased its Bitcoin ownership?
MicroStrategy has increased its Bitcoin ownership as part of its strategic plan to adopt Bitcoin as its primary treasury reserve asset. The company believes in the long-term potential of Bitcoin as a store of value and hedge against inflation.
2. What is MicroStrategy’s total Bitcoin ownership now?
MicroStrategy’s total Bitcoin ownership now stands at 189,150 BTC, which represents a significant increase from its initial purchase of 21,454 BTC in August 2020.
3. How does MicroStrategy view Bitcoin as an asset?
MicroStrategy views Bitcoin as a reliable asset that provides protection against the devaluation of fiat currencies. The company believes that Bitcoin’s limited supply and decentralized nature make it a secure store of value with the potential for long-term appreciation.
4. What are the benefits of MicroStrategy’s increased Bitcoin ownership?
By increasing its Bitcoin ownership, MicroStrategy enhances its exposure to potential price appreciation, thereby increasing the value of its overall assets. Additionally, the company establishes itself as a leading corporate player in the Bitcoin space, potentially attracting more investors and partners.
5. Is MicroStrategy’s move towards Bitcoin risky?
MicroStrategy’s move towards Bitcoin is not without risks. The cryptocurrency market is known for its volatility, which means the value of Bitcoin can fluctuate significantly in short periods. However, MicroStrategy believes that the potential rewards of Bitcoin’s long-term performance outweigh the risks involved.
6. How does MicroStrategy’s Bitcoin ownership impact its shareholders?
MicroStrategy’s Bitcoin ownership can have both positive and negative effects on its shareholders. On one hand, if Bitcoin’s price continues to appreciate, the value of the company’s assets will increase, potentially benefiting shareholders. On the other hand, if Bitcoin’s price declines, it could negatively impact the company’s financial position and, subsequently, its shareholders.
7. Does MicroStrategy have any plans for further Bitcoin acquisitions?
MicroStrategy has expressed its intention to continue acquiring Bitcoin as part of its treasury strategy. The company has stated that it may purchase additional Bitcoin using cash reserves or by accessing debt capital markets, demonstrating its long-term commitment to Bitcoin ownership.