MicroStrategy Invests $155 Million to Acquire an Additional 3,000 Bitcoins
MicroStrategy, led by Michael Saylor, has further increased its Bitcoin holdings as the cryptocurrency’s price surged from around $41,000 to over $50,000 in February.
The company acquired an additional 3,000 Bitcoin, spending an estimated $155 million at an average price of $51,813. With this latest purchase, MicroStrategy now holds 193,000 Bitcoin, making it one of the largest corporate Bitcoin holders in the world.
MicroStrategy initially started buying Bitcoin in 2020 as a hedge against inflation and the economic impact of the COVID-19 pandemic. Saylor believed that Bitcoin would protect against the declining value of the U.S. dollar. The company has funded its Bitcoin purchases using cash, debt, and equity.
Saylor has consistently praised Bitcoin as the ultimate cryptocurrency asset. He highlights its technological design, which maintains a favorable demand-supply dynamic for holders. According to Saylor, Bitcoin’s demand outweighs its supply by 10 times, and its scarcity is ensured by the halving event that occurs every four years. With only 21 million Bitcoin ever to exist, the limited supply adds to its value.
Saylor also credits the approval of spot Bitcoin ETFs by the U.S. SEC for allowing large amounts of money to flow into Bitcoin through the exchange-traded fund wrapper. This has provided BTC exposure to Wall Street investors. Since their launch on January 11, spot BTC ETFs have accumulated over $15 billion in assets under management, supported by over 250,000 Bitcoin.
MicroStrategy has no plans to sell its Bitcoin holdings, according to Saylor. He remains committed to buying more Bitcoin in the future, believing in its long-term value and its potential as a hedge against traditional currencies.
