MicroStrategy Expands Bitcoin Holdings for 10th Consecutive Week
MicroStrategy has purchased Bitcoin for the 10th week in a row, acquiring 2,530 BTC for $243 million, bringing its total holdings to 450,000 BTC. Average acquisition cost is $62,691 per Bitcoin, significantly below the current market value. Company executive Michael Saylor advocated for Bitcoin investment over traditional bonds, emphasizing positive performance since its treasury adoption.
MicroStrategy, renowned as the largest corporate holder of Bitcoin, has maintained its intensive accumulation strategy, marking its 10th consecutive week of purchasing the cryptocurrency. As reported by CoinDesk on January 13, the firm acquired an additional 2,530 BTC in the previous week, amounting to $243 million, with an average acquisition cost of $95,972 per Bitcoin. This latest purchase elevates MicroStrategy’s total Bitcoin holdings to approximately 450,000 BTC, translating into a total investment of $28.2 billion—45.5% less than the current market value of $41.04 billion.
Since 2020, when it adopted Bitcoin as a primary treasury strategy, MicroStrategy has financed its acquisitions through stock issuance and bond sales. Despite the volatility in the cryptocurrency market, the firm has demonstrated unwavering commitment to its strategy over the last 10 weeks. During the ICR Conference on January 13, Executive Chairman Michael Saylor advocated for companies to consider investing in Bitcoin instead of “toxic bonds,” highlighting the significant price appreciation of Bitcoin since MicroStrategy embraced it.
The impact of MicroStrategy’s strategy extends beyond its own holdings, inspiring other corporations to similarly allocate Bitcoin as a treasury asset. Notable companies, including Tesla, Block, Rumble, Semler Scientific, and Banzai, have followed suit. Recently, Semler Scientific joined the ranks of corporate Bitcoin holders by acquiring 237 BTC at an average price of $98,267, raising its total Bitcoin holdings to 2,321 with a total investment of $191.9 million.
Despite prevailing economic concerns and a subdued performance in Bitcoin’s market price, the response of stock prices from these companies has been relatively stable. MicroStrategy’s stock experienced a slight 5% decline in premarket trading yet ultimately closed modestly higher at $328.40, reflecting a 30% decrease from its peak in November. Similarly, Semler Scientific’s stock faced a premarket drop of 7% but ended the trading day with an increase of 2.61%.
MicroStrategy has taken a leading position in Bitcoin investment by adopting it as a crucial treasury reserve asset since 2020. The firm has raised funds through capital markets to bolster its Bitcoin purchases, leveraging market conditions to maintain its acquisition strategy. This approach has not only increased its Bitcoin reserves significantly but also influenced various other corporations to integrate Bitcoin into their financial strategies, showcasing a growing trend among companies to hedge against traditional financial instruments through cryptocurrency investment.
In conclusion, MicroStrategy’s unwavering commitment to Bitcoin accumulation through strategic financial maneuvers has reinforced its position as a primary corporate holder of the cryptocurrency. The company’s acquisitions have sparked interest among other corporations while demonstrating resilience amidst market fluctuations. As Bitcoin continues to present as an alternative treasury asset, it remains to be seen how these investments will influence broader corporate finance practices in the future.
Original Source: www.tokenpost.com
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