MicroStrategy boosts its already substantial Bitcoin holdings with a fresh $620 million investment in BTC.
MicroStrategy, founded by Michael Saylor in 1989, now holds an impressive 189,150 Bitcoin, valued at over $8 billion as of December 27th. In its latest acquisition, the company purchased an additional 14,620 Bitcoin at an average price of $42,110 per coin, amounting to a total expenditure of $615.7 million. This move is part of Saylor’s investment strategy to counter the threat of inflation, which he considers a growing concern. Since the start of the global pandemic, MicroStrategy has invested approximately $5.9 billion in Bitcoin.
Through a combination of cash, debt, and equity, MicroStrategy’s investment in Bitcoin has proven highly profitable, raking in around $2 billion in profits. Additionally, this move has positively impacted the company’s stock, with a 300% increase in 2023 alone. At present, the stock is valued at $603.89, according to Google Finance.
Interestingly, MicroStrategy’s decision to double down on Bitcoin aligns with the growing interest in a spot Bitcoin ETF by various Wall Street firms and crypto-native asset managers. Thirteen companies, including BlackRock, Hashdex, and ARK 21Shares, have submitted bids to the U.S. Securities and Exchange Commission (SEC) to gain approval for a spot BTC ETF. While the approval is uncertain, the SEC has been actively engaging with these firms, leading to amendments in their applications and sparking speculation that spot BTC ETFs may soon be approved in the United States.
Saylor believes that the approval of spot Bitcoin ETFs could be a pivotal moment for both traditional finance and the crypto industry. Experts and speculators anticipate a decision to be made in early January 2024, just a few months before BTC’s halving event in April.
In conclusion, MicroStrategy’s substantial investment in Bitcoin, along with the possibility of spot BTC ETF approvals, has generated significant interest and potential opportunities for investors in the coming months.
