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  • Major Acquisition: MicroStrategy Grows Bitcoin Reserves By 14K BTC Ahead Of ETF Approval

    Major Acquisition: MicroStrategy Grows Bitcoin Reserves By 14K BTC Ahead Of ETF Approval

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    MicroStrategy (MSTR), a prominent Bitcoin holding company, has once again expanded its BTC holdings with a substantial purchase of 14,620 Bitcoin, amounting to a staggering $615.7 million. 

    The former CEO of the American business intelligence (BI) firm announced the acquisition, highlighting the company’s continued confidence in Bitcoin’s long-term potential. 

    With the potential approval of Bitcoin spot exchange-traded funds (ETFs) on the horizon, MicroStrategy aims to capitalize on the positive impact on BTC’s price and the company’s profitability in the leading cryptocurrency market.

    MicroStrategy Stock Skyrockets 337%

    According to a CNBC report, MicroStrategy’s stock has experienced a remarkable 337% surge in 2023, making it one of the top gainers among US companies valued at $5 billion or more. 

    This success surpasses the rallies of industry giants like Nvidia and Meta. Unlike its tech peers, MicroStrategy’s appeal to investors stems primarily from its Bitcoin holdings. 

    The 1-day chart shows MSTR’s continuous uptrend. Source: MSTR on TradingView.com

    MicroStrategy’s market capitalization currently stands at $8.5 billion, with a staggering 90% directly tied to its Bitcoin holdings. The company’s stock price closely mirrors the performance of Bitcoin, with significant fluctuations in response to the cryptocurrency’s price movements. 

    Per the report, in 2022, when Bitcoin experienced a 64% decline, MicroStrategy’s stock plummeted by 74%. Despite the substantial gains achieved this year, MicroStrategy shares are still below their peak levels in 2021, during the cryptocurrency’s peak.

    Michael Saylor’s Vision

    MicroStrategy’s decision to invest in Bitcoin dates back to July 2020, when the company recognized the potential of alternative assets, including digital currencies. 

    At that time, MicroStrategy had a market capitalization of around $1.1 billion, primarily driven by its software business, which has been shrinking since 2015. Co-founder Michael Saylor, who was CEO then, saw an opportunity to put the company’s idle cash reserves to work, considering low interest rates and the need for diversification.

    Saylor’s conviction in Bitcoin as a digital form of gold led MicroStrategy to prioritize Bitcoin purchases over equities and precious metals. This strategic move exposed investors to Bitcoin indirectly through MicroStrategy’s stock. 

    Saylor, who transitioned to executive chairman, remains optimistic about Bitcoin’s future, expecting the bull market to continue into the next year. Despite its growing popularity, Saylor emphasized that Bitcoin still represents only a fraction of global capital allocation, with ample room for further growth.

    As of December 27, 2023, MicroStrategy’s latest purchase adds to its already impressive Bitcoin portfolio, bringing the total holdings to 189,150 BTC. 

    The company has invested approximately $5.9 billion, with an average purchase price of $31,168 per Bitcoin. These strategic acquisitions position MicroStrategy as a major player in the crypto space, aligning its interests with the anticipated growth and adoption of Bitcoin.

    Microstrategy
    The daily chart shows BTC’s sideways price action over the past 24 hours. Source: BTCUSTD on TradingView.com

    The current market data shows that Bitcoin is trading at $42,900, reflecting a marginal 0.5% increase over the past 24 hours. The cryptocurrency briefly dipped below its critical support level of $42,000 but has since regained its position.

    The market is anticipating the potential approval of the Bitcoin Spot ETF applications between January 5 and 10, 2024. 

    This development holds significant promise for Bitcoin, as it could drive the cryptocurrency’s price well beyond $50,000, establishing a new yearly high and edging closer to its historical peak.

    Featured image from Shutterstock, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • MicroStrategy’s $4.6 Billion Bitcoin Bet Pays Off, Here’s How Much It’s Worth Now

    MicroStrategy’s $4.6 Billion Bitcoin Bet Pays Off, Here’s How Much It’s Worth Now

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    The cryptocurrency industry has experienced significant growth in recent weeks with an influx of capital. This influx of capital has forced Bitcoin over various price resistances, with the latest being a brief cross over the $37,000 level. MicroStrategy has emerged as a prominent public company that has successfully capitalized on this price push.

    MicroStrategy’s blockbuster bet on the world’s largest cryptocurrency has certainly paid off so far. The company has posted over $1 billion in unrealized profit thanks to Bitcoin’s 36% increase from $26,750 since October 13. Shares of MicroStrategy have also risen simultaneously, soaring more than 55% since the same time period.

    MicroStrategy’s Bold Bitcoin Bet Paying Off

    MicroStrategy started buying in Bitcoin in 2020 but the latest acquisition came in October, amidst the influx of money into Bitcoin, where the company announced it had acquired an additional 155 BTC for $5.3 million. 

    MicroStrategy now owns a total of 158,245 BTC, acquired at an average total value of $4.68 billion. At BTC’s current price of around $36,500, MicroStrategy’s BTC investment is now worth over $5.77 billion, representing an unrealized 26% return of $1.1 billion in around three years.

    The company’s investment in Bitcoin has also paid off on the back end of its stock price, as it has outperformed many stocks and assets since the adoption of its Bitcoin strategy. The share price has shot up 242% from its open price of $145 at the beginning of the year. 

    At the time of writing, MicroStrategy share is trading at $497, and Michael Saylor noted that this growth has been largely in part to its innovative Bitcoin strategy.

    BTC resumes uptrend | Source: BTCUSD on Tradingview.com

    BTC Putting Microstrategy On The Map

    MicroStrategy’s Michael Saylor has been an outspoken proponent of Bitcoin. Saylor’s belief in Bitcoin spearheaded MicroStrategy’s investment in the asset, and a cursory look through his social media page on X shows various posts promoting Bitcoin. 

    Saylor recently stated, in an interview with Fox Business, that MicroStrategy’s BTC investments were part of a well-planned strategy to rival tech giants like Google, Microsoft, and Apple. 

    “What we did in August of 2020 was recognize that there’s no way we’re going to outgrow Google and Microsoft and Apple Computer as a mid-sized software company. We realized Bitcoin is like a high-tech dominant digital network growing at 40% or 50% a year, and so we bought it,” he said in the interview.

    Saylor also expects the demand for BTC to double in the next 12 months amidst its next halving and the approvals of spot Bitcoin ETFs in the US. Ultimately, he believes that the price of BTC will eventually reach $5 million. 

    MicroStrategy isn’t the only company with Bitcoin on its balance sheet. Public companies now own a total of 239,494 BTC, representing 1.23% of the total supply. Marathon Digital, Galaxy Digital, and Tesla are a few of these companies, holding 13,286, 12,545, and 10,500 BTC, respectively.

    Featured image from MicroStrategy, chart from Tradingview.com

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    Scott Matherson

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