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| MicroStrategy Continues to Bet Big on Bitcoin with $37 Million Purchase #Bitcoin |
MicroStrategy, a leading business intelligence and software company, has announced that it acquired an additional 850 bitcoins in January, bringing its total holdings to 190,000 bitcoins, worth over $8 billion at current prices. Business intelligence giant MicroStrategy continues its unwavering commitment to Bitcoin, announcing the purchase of an additional 850 BTC for $37.2 million on January 30th, 2024. This latest acquisition brings the company's total Bitcoin holdings to a staggering 190,000 BTC, valued at roughly $8.2 billion at the time of writing.
MicroStrategy's Bitcoin strategy, spearheaded by CEO Michael Saylor, has been a topic of much discussion and debate within the financial world. The company began acquiring Bitcoin in August 2020, viewing it as a hedge against inflation and a long-term store of value. Despite significant price fluctuations and market volatility, MicroStrategy has continued to accumulate Bitcoin, making it one of the largest corporate holders of the cryptocurrency.
The company, which is the largest publicly traded holder of bitcoin, said it spent $37.2 million to buy the additional bitcoins at an average price of $43,763 per bitcoin. The purchase was made as part of its treasury reserve strategy, which aims to preserve and increase its capital by investing in bitcoin.
MicroStrategy's founder and chairman, Michael Saylor, is one of the most vocal advocates of bitcoin, calling it "the ultimate inflation hedge" and "the world's first engineered safe-haven asset". He believes that bitcoin is superior to gold, cash, and other traditional assets, and that it will become the dominant store of value in the future.
This recent purchase marks MicroStrategy's 13th consecutive quarter of adding Bitcoin to its balance sheet. In a statement, Andrew Kang, Chief Financial Officer of MicroStrategy, said, "We acquired 31,755 additional bitcoins since the end of the third quarter, marking the largest quarterly bitcoin holding increase in the last 3 years and the 13th consecutive quarter of adding more bitcoin on our balance sheet."
The news of MicroStrategy's latest Bitcoin purchase has been met with mixed reactions. Some see it as a bold and visionary move, while others remain skeptical of the long-term viability of Bitcoin as a safe-haven asset. Regardless of the differing opinions, MicroStrategy's unwavering commitment to Bitcoin is undeniable, and its actions are likely to continue to influence the broader conversation surrounding cryptocurrency adoption.
Saylor said that 2024 is the year of the birth of bitcoin as an institutional-grade asset class, and that the next 15 years will be a regulated, high-growth period for the cryptocurrency. He also said that MicroStrategy will continue to purchase more bitcoin and work with other ecosystem participants to increase its revenue and value creation.
MicroStrategy's bitcoin strategy has been well-received by the market, as its share price has surged by more than 300% since it began buying bitcoin in August 2020. The company has also raised capital through convertible debt offerings to fund its bitcoin purchases, attracting investors such as Paul Tudor Jones and Stanley Druckenmiller.
However, the company's bitcoin strategy also comes with risks, as the price of bitcoin is volatile and subject to regulatory uncertainty. The company's revenue decreased by 6.1% year-over-year in the fourth quarter of 2023, and its net income was $89.1 million, compared to a loss of $249.7 million in 2022.
MicroStrategy is not the only company that has embraced bitcoin as a treasury reserve asset. Other notable examples include Square, which has invested $220 million in bitcoin, Tesla, which has invested $1.5 billion in bitcoin, and MassMutual, which has invested $100 million in bitcoin.
The trend of corporate adoption of bitcoin is expected to continue, as more companies seek to hedge against inflation, diversify their portfolios, and enhance their returns. According to a recent survey by Gartner, 5% of finance executives plan to hold bitcoin as a corporate asset this year.
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Additional Note:
This article does not constitute financial advice. Please do your own research before making any investment decisions.
