MicroStrategy, an American business intelligence giant, recently made headlines for drastically expanding their Bitcoin holdings as part of their corporate treasury strategy. They recently purchased 21,550 BTC worth approximately $2.1 billion.
Bitcoin’s Milestone Does Not Deter MicroStrategy
Bitcoin made history when it surpassed $100,000 for the first time ever and sent its market cap soaring past new heights. A public company made their latest acquisition public as they raised $2.13 billion through selling company shares – with each Bitcoin costing an average cost per Bitcoin, including fees and expenses, standing at $98,783.
Michael Saylor, MicroStrategy’s CEO, shared that with this latest acquisition, MicroStrategy now owns 423,650 BTC acquired at an aggregate cost of $25.6 billion – or an average of $60,324 per Bitcoin. Saylor remains bullish on Bitcoin despite its unpredictable ascent; previously expressing a willingness to “buy the top forever” and purchase even at $1 million per coin.
MicroStrategy’s aggressive investment strategy means it now holds just under 2% of Bitcoin supply, which stands at 21 million coins. Furthermore, Saylor has advocated for the U.S. government to switch from gold reserves to digital coins as an investment, potentially destabilizing traditional gold markets in favor of cryptocurrency-driven financial systems.
A Pattern of Persistent Purchasing
This company’s strategy in Bitcoin has attracted international companies like Japan’s Metaplanet. Furthermore, their successful use has tried to persuade major tech corporations like Microsoft to consider including it in their financial reserves.
Though successful, not everyone is convinced of MicroStrategy’s Bitcoin venture’s viability; some skeptics predict possible setbacks. At time of reporting, Bitcoin’s price had slightly declined over 24 hours to $100,192 — an insignificant decline of 0.1% from when Bitcoin’s price peaked in January at $155,000.
