• Tue. Apr 23rd, 2024

MicroStrategy Makes an Additional $616 Million Bitcoin Purchase

Walter Swift

ByWalter Swift

Dec 29, 2023

In a December 27 announcement, MicroStrategy revealed the purchase of 14,620 Bitcoins within the past month worth $615.7 million, securing them at an average price of $42,110 per Bitcoin (approximately). The company published the details in a Form 8-K filing on its website. After MicroStrategy’s investment, the Bitcoin surged beyond $43,000 at the current juncture.

According to the filing, MicroStrategy executed these purchases between November 30 and December 26. This recent addition elevates MicroStrategy’s overall Bitcoin holdings to 189,150 Bitcoins, procured at an average cost of $31,168. The company has invested $5.89 billion in its Bitcoin holdings, which presently reflects a market value of $8.1 billion, marking an on-paper appreciation of $2.2 billion.

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MicroStrategy’s Stock Surges by 350% in 2023

MicroStrategy’s stock (MSTR) has skyrocketed by more than 350%. The increase is because observers are hoping for the approval of a Bitcoin ETF in the United States. 

 The performance of MicroStrategy’s stock has been even better than Bitcoin’s growth. Bitcoin has increased by 160% this year. That’s a ratio of almost 2:1, favoring MicroStrategy’s growth.

 Analysts think of MicroStrategy’s stock as a leveraged Bitcoin ETF because of its relationship to the cryptocurrency. They say that the company used a mix of long-term, low-interest debt and share sales to pay for its Bitcoin. As of September 30, the company owed about $2.534 billion, 7.7% less than the previous year, and $2.180 billion was long-term debt.

The Crypto Community Waits for the Approval of a Bitcoin ETF

Throughout 2023, Bitcoin’s value surged by more than 160% due to high expectations of approved Bitcoin exchange-traded funds (ETFs) in the US. Despite the economic situation, Bitcoin performed better than traditional assets like stocks and bonds. Spot trading involves buying or selling Bitcoin immediately at the current market price.

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The crypto community expects the US SEC to decide in early January on allowing Bitcoin trading through ETFs. Major players such as Fidelity and BlackRock are striving for approval. If granted, these ETFs could (potentially) raise Bitcoin’s value and make it more accessible to a broad range of investors.

 About MicroStrategy: An Overview

Renowned for its powerful business intelligence tools, MicroStrategy is going through a massive metamorphosis. While it continues to focus on its core function of analyzing data, the company is now venturing into AI-driven applications and cloud-based intelligence.

Established in 1989, MicroStrategy gained recognition as a leader in business intelligence, aiding companies in extracting valuable insights from data and making well-informed decisions. However, acknowledging the immense potential of artificial intelligence, the company has made a strategic pivot in its approach.

Presently, MicroStrategy is positioning itself as a hub for “Intelligent Applications.” Its primary focus involves seamlessly integrating Al elements like machine learning and natural language processing into existing applications, websites, and physical spaces. This integration empowers businesses to offer personalized user experiences, streamline tasks through automation, and gain deeper insights into customer behavior.

MicroStrategy recently garnered attention by significantly accumulating Bitcoin, amassing holdings exceeding 189,000 BTC. CEO Michael Saylor views this move as a strategic shift, diversifying their assets from traditional cash reserves to hedge against inflationary pressures. However, critics have raised concerns about potential risks: the volatile nature of Bitcoin’s value could significantly impact MicroStrategy’s portfolio. Regulatory uncertainties pose challenges to the long-term viability of this investment. Whether MicroStrategy’s bold steps in the cryptocurrency industry prove to be a wise move or a risky gamble remains uncertain, yet its influence on corporate treasury strategies is indisputable.

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Walter Swift

Walter Swift

Walter Swift is an adept crypto writer, known for his deep insights into the decentralized world. His pieces artfully break down complex blockchain topics, making them accessible to a broad audience. With a passion for emerging technologies, Walter's articles are a beacon for crypto enthusiasts and novices alike.

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