MicroStrategy Acquires 5.2K Bitcoin in Aggressive Buying Strategy
MicroStrategy goes bold in its investment in Bitcoin, having acquired more than 5,200 BTC at over $100,000 while retaining its title as the corporate king in BTC holding.
Leading business solutions firm MicroStrategy continues its strategy of buying Bitcoin even though it’s already the largest corporate holder. In the latest investment, MicroStrategy invested in 5,262 BTC at approximately $106,662 per coin, the highest price per BTC purchase by the firm.
This investment cost the firm almost $561 million and positioned it corporate further as one of the key players in the fast-paced cryptocurrency world. As of Dec. 22, the company and its subsidiaries hold 444,262 BTC.
Its largest BTC purchase was $27.7 billion worth — a price of $62,257/BTC. Nevertheless, the company doesn’t appear to be slowing down, keeping to a pledge by founder Michael Saylor that it would keep buying Bitcoin regardless of price.
A Gradual Decline in BTC Buying Pace
While the latest purchase underlines MicroStrategy’s continued Bitcoin accumulation, the firm’s rate of accumulation has slowed down. For context, the company purchased about 42,162 BTC between Nov. 11 and Dec. 22 alone, which would cost nearly $4 billion at today’s value.
However, the latest purchase is just 12% of that. The recent buy from MicroStrategy constitutes a 191% drop from its Dec. 16 acquisition and a 309% decrease from Dec. 9.
Analysts say this could be a combination of broader market conditions and a shift in internal strategy. This purchasing trend is important given that the firm’s purchases have often affected market sentiment.
Speculation Around MicroStrategy’s 2025 Plans
According to several market observers, the business solutions firm could enter a “blackout” period starting January 2025, during which it cannot purchase more BTC or issue new shares and convertible bonds for funding fresh purchases. However, MicroStrategy’s CEO, Michael Saylor, remains steadfast.
In a recent interview, he expressed confidence in Bitcoin’s long-term value, stating, “I’m sure I’ll be buying Bitcoin at $1 million a coin.” Meanwhile, BitMEX co-founder Arthur Hayes recently warned of possible market volatility during the inauguration period of US President-elect Donald Trump.
Hence, his investment fund, Maelstrom, plans to reduce positions in anticipation of a dip in Bitcoin prices.
Nasdaq-100’s MicroStrategy Inclusion Will Improve Visibility
This listing into the Nasdaq-100 index earlier this month was the first in the history of the company. The index, which features leading non-financial companies like Apple and Nvidia, included MicroStrategy upon the company meeting its criteria.
This inclusion could translate to higher trading volumes and cause MicroStrategy’s stock price to rise by 20% to 40% on days of positive flows. Michael Saylor celebrated this feat on social media, emphasizing how MicroStrategy is determined to be the leading light for corporate Bitcoin adoption.
The Nasdaq-100 inclusion has sparked discussions about the implications for other companies considering similar moves.
Bitcoin Price Volatility Challenges MicroStrategy’s Strategy
Bitcoin recently reached an all-time high of $108,000 after hawkish comments by the US Federal Reserve over inflation and interest rates. That slip has dragged the stock price of MicroStrategy 6% lower to $342 in the immediate aftermath of its latest BTC acquisition announcement.
By using convertible notes, MicroStrategy has effectively utilized its resources for buying Bitcoin. This is a high-risk strategy because it can provide the corporation with long-term gains over time as Bitcoin’s usage and value grow, but it can also result in huge losses if the BTC’s value falls drastically.
As the markets mature, other firms may think about similar strategies, but not without careful risk management strategies.
MicroStrategy, Bezos, and BTC Investment
In a related development, Michael Saylor recently said that Amazon founder Jeff Bezos should invest $100 million in Bitcoin and not “waste” the amount on a “silly wedding.” While Bezos shrugged off rumors about the expensive cost of his wedding, comments by Saylor reflect his belief in the transformative power of Bitcoin.
MicroStrategy’s move goes beyond corporate investment but also includes active and public advocacy for the coin’s broader, multi-industry adoption.
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