MicroStrategy Boosts Bitcoin Investments Worth $615.7 Million as Interest Grows for Spot Bitcoin ETF
In Brief
In a significant move, MicroStrategy purchased 14,620 Bitcoins for a total of $615.7 million, buying in cash as optimism for the approval of a spot Bitcoin ETF builds ahead of January 2024.
Software firm MicroStrategy The company spent approximately $615.7 million in cash to acquire 14,620 Bitcoins, at an average price of around $42,110 between November 30 and December 26, as revealed in their regulatory disclosures.
"With its limited supply, Bitcoin provides a potential for value appreciation if more people adopt it, and it can serve as a long-term hedge against inflation,\" stated MicroStrategy in their most recent quarterly report.
MicroStrategy remarked in its latest quarterly results.
Since it began acquiring Bitcoin in 2020, MicroStrategy and its subsidiaries have amassed nearly 189,150 Bitcoins, costing about $5.9 billion. The company reinforces its commitment to holding these assets long-term while planning to continue increasing its collection of the leading cryptocurrency.
MicroStrategy’s decision Investing in Bitcoin to safeguard its reserve assets has made MicroStrategy's stock more appealing, typically aligning with the performance of digital currencies. Following the latest announcement, shares surged by 8%. Throughout this year, the company's stock has soared more than 350%. Bitcoin itself has gained nearly 160%.
In September of this year, MicroStrategy announced expanded its Bitcoin portfolio by adding 5,445 Bitcoins at a total investment of roughly $147.3 million, averaging $27,053 per Bitcoin, including all costs. Today, the company stands out as one of the most prominent institutional Bitcoin holders.
MicroStrategy's Confidence in Bitcoin
This announcement arrives at a time when there is heightened anticipation about the possible approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC).
Recently, a variety of applications have been submitted to the regulatory body, with applications from established financial institutions as well. surge in filings Currently, about thirteen companies are waiting for the SEC's acceptance, with a verdict expected shortly. BlackRock This exchange-traded fund would replicate the market price of Bitcoin, offering investors a way to gain exposure to the cryptocurrency without needing to own it directly. 10th January 2024.
A spot cryptocurrency ETF MicroStrategy's strategic investments in Bitcoin have positively influenced its stock performance, indicating a significant upward trend. Their Bitcoin purchases reflect the company’s strong belief in the lasting value and stability of this digital asset, particularly as excitement mounts over the potential approval of a spot Bitcoin ETF.
Securities and Exchange Commission
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