MicroStrategy, a provider of business intelligence, continues to buy Bitcoin in anticipation of the possible U.S. approval of a spot BTC exchange-traded fund (ETF). MicroStrategy disclosed on Wednesday that it had paid cash for bitcoin worth approximately $615.7 million. Between November 30 and December 26, the organization and its subsidiaries acquired approximately 14,620 bitcoins at an average cost of $42,110, according to a regulatory filing.
MicroStrategy has acquired an additional 14,620 BTC for ~$615.7 million at an average price of $42,110 per #bitcoin. As of 12/26/23, @MicroStrategy now hodls 189,150 $BTC acquired for ~$5.9 billion at an average price of $31,168 per bitcoin. $MSTR https://t.co/PKfYY59sTW
— Michael Saylor⚡️ (@saylor) December 27, 2023
The acquisition brings the total Bitcoin holdings of MicroStrategy and its subsidiaries to 189,150 BTC, representing an approximate $5.9 billion aggregate purchase price and a $31,168 average purchase price per BTC. At current prices, MicroStrategy holds 189,150 BTC worth $8.1 billion. It holds the greatest amount of the cryptocurrency among corporations.
On August 11, 2020, Michael Saylor, chairman and founder of the company, initiated MicroStategy’s Bitcoin purchasing strategy by allocating $250 million towards the cryptocurrency. Later, the organization continued to acquire the asset, Saylor referring to it as “digital gold” and a superior substitute for currency. Saylor asserts that purchasing and holding Bitcoin for an extended period of time will increase returns for the company’s shareholders and combat inflation. Notwithstanding its transient instability, the value of the cryptocurrency has solely risen since its inception in 2009.
MicroStrategy’s most recent Bitcoin acquisition follows a November 2023 transaction involving the firm and 16,130 Bitcoins for $36,785 per Bitcoin. Prior to this, the organization purchased 6,067 BTC in October and September 2023, and 12,333 BTC in June.
Due to its limited supply, bitcoin offers the opportunity for appreciation in value if its adoption increases and has the potential to serve as a hedge against inflation in the long-term.
The company said in its latest quarterly report.
MicroStrategy’s commitment to Bitcoin investment is further demonstrated by the acquisition, which is consistent with the vision of the company’s co-founder and principal Bitcoin advocate Michael Saylor. The announcement is made just a few weeks prior to January 10, the date on which the Bitcoin community expects the SEC to authorize a spot Bitcoin ETF or several such ETFs.
Saylor posits that the introduction of a spot Bitcoin ETF could be the “most significant development on Wall Street in three decades,” as it would grant access to BTC to institutional and mainstream investors who were previously unable to do so.
A flurry of filings in recent months, including those from traditional finance behemoths such as BlackRock, has revived the cryptocurrency markets, which had been devastated following the failure of several high-profile firms, including Sam Bankman-Fried’s FTX. By mirroring the market price of the underlying cryptocurrency asset, a spot crypto ETF would provide investors with exposure to the token without requiring them to purchase the currency.
