The business intelligence firm MicroStrategy has made headlines once again with its recent purchase of 18,300 Bitcoin, valued at around $1.11 billion.
This acquisition, the company’s largest in over three years, was revealed in a recent filing with the US Securities and Exchange Commission (SEC), which occurred between August 6 and September 12, 2024.
MicroStrategy Now Owns 1% Of All Bitcoin Ever Created
With this acquisition, MicroStrategy’s total Bitcoin holdings now amount to roughly 244,800 BTC, valued at around $14 billion, equating to about 1% of all Bitcoin ever created. The firm acquired its Bitcoin for a total cost of about $9.45 billion, with an average purchase price of approximately $38,585.
Additional Reading
As noted by Bloomberg, this latest purchase was funded through the issuance and sale of common shares, a tactic that is part of its wider capital allocation strategy. In August, MicroStrategy executed a 10-for-1 stock split to enhance share accessibility for investors and employees.
Located in Tysons Corner, Virginia, MicroStrategy initiated its Bitcoin acquisition strategy in 2020 as a defense against inflation. Co-founder and executive chairman Michael Saylor is a prominent supporter of Bitcoin, viewing it as a superior store of value compared to conventional assets like cash, bonds, or gold.
In spite of the fluctuations in the cryptocurrency market, Saylor remains optimistic about Bitcoin’s long-term prospects and continues to acquire more digital assets.
Analysis of Bitcoin Prices
According to NewsBTC, Saylor disclosed that he possesses around $1 billion worth of BTC and has no intentions to sell any of his holdings. He regards Bitcoin as an excellent investment for individuals, families, institutions, and even nations.
Additionally, Saylor’s faith in BTC’s potential is highlighted in his forecast that the cryptocurrency could reach a value of $13 million by 2045, based on the expectation that BTC will eventually capture 7% of the world’s capital.
Moreover, the company’s investments have resulted in a significant rise in MicroStrategy’s stock (MSTR), which has more than doubled in value this year, outperforming the roughly 40% increase in Bitcoin’s price over the same timeframe.
Additional Reading
As of now, BTC is trading at $58,820, reflecting a 2.3% increase in the last 24 hours and over 8% in the past week. This could indicate a continuation of the recovery seen in BTC, as well as in the broader market, which has managed to endure significant volatility.
Nonetheless, BTC’s potential for further increases will hinge on its ability to break through its most significant resistance barrier to date, represented by the 200-day exponential moving average on the daily BTC/USDT chart, marked by the yellow line above, at $59,775.
Featured image from DALL-E, chart from TradingView.com
