- MicroStrategy’s Michael Saylor reinforces Bitcoin investment as a key cash reserve strategy.
- Bitcoin rallies to $43,000, with potential to break resistance and reach between $47,000 and $50,000.
MicroStrategy, one of the most influential companies in the cryptocurrency sector, has made history again. Have you heard the latest? They’ve bought Bitcoins worth $615 million. Yes, you read that right. With this purchase, the total value of Bitcoin on their balance sheet has reached an impressive $6 billion.How about that?
MicroStrategy has acquired an additional 14,620 BTC for ~$615.7 million at an average price of $42,110 per #bitcoin. As of 12/26/23, @MicroStrategy now hodls 189,150 $BTC acquired for ~$5.9 billion at an average price of $31,168 per bitcoin. $MSTR https://t.co/PKfYY59sTW
— Michael Saylor
(@saylor) December 27, 2023
Michael Saylor, the president of MicroStrategy, recently announced the acquisition of an additional 14,620 BTC for approximately $615.7 million. This puts the average purchase price per Bitcoin at $42,110.
As of December 26, 2023, MicroStrategy has accumulated 189,150 BTC, acquired for about $5.9 billion, with an average cost per Bitcoin of $31,168. This move reinforces MicroStrategy’s commitment to Bitcoin as a strategic part of its cash reserve.
did you know that this is MicroStrategy’s first major purchase after acquiring 155 BTC last month? In addition, the company holds the enviable position of being the largest privately held company to have the most Bitcoins on its balance sheet.
Now, let’s talk stocks
MicroStrategy (NASDAQ: MSTR) stock has gained twice as fast in earnings compared to Bitcoin in 2023. While Bitcoin’s price is up 160% year-to-date, MSTR stock is up a staggering 316% since the beginning of 2023. In the crypto community, everyone is keeping an eye on the launch of the first U.S. spot Bitcoin ETF, tentatively scheduled for Jan. 10. What impact do you think it will have?
Saylor has commented on the potential negative impact of launching an ETF on MSTR. He stated that MicroStrategy is distinguished by its status as an operating company, unlike ETFs that are not leveraged and charge fees.
He highlighted MicroStrategy’s ability to generate additional BTC through profit and loss (P&L) or capital markets trading. He compared MicroStrategy to an airline, in contrast to ETFs he compared to shipping lines, suggesting that MicroStrategy offers higher yield and leverage with no associated fees.
And now, the big question: Will the price of BTC reach $50,000?
After a significant drop today, the Bitcoin price has recovered to $43,000. Currently, Bitcoin has been moving in a tight range of $42,000-$44,000. If it breaks the upper resistance, the BTC price could move toward the $47,000-$50,000 area.
MicroStrategy is once again leading the way in the cryptocurrency world with this massive Bitcoin purchase. Their strategies and moves not only reflect their confidence in Bitcoin but also set a precedent for other companies. With the possible launch of a spot Bitcoin ETF and the fluctuation in the price of Bitcoin, we are at a crucial and exciting time for cryptocurrencies.
What does the future hold? It’s clear that MicroStrategy is betting big, and many are watching to see how this bet plays out in the cryptocurrency market.
