Business intelligence company MicroStrategy has made big headlines again with its latest acquisition of 18,300 Bitcoin, valued at approximately $1.11 billion.
The purchase, the largest by the company in over three years, was disclosed in a recent with the US Securities and Exchange Commission (SEC), which took place between August 6 and September 12, 20241.
MicroStrategy Now Holds 1% Of All BTC Ever Issued
This purchase brings MicroStrategy’s total Bitcoin holdings to around 244,800 BTC, valued at approximately $14 billion. Notably, this represents about 1% of all Bitcoin ever issued. The company acquired its Bitcoin at an aggregate purchase price of about $9.45 billion, with an average purchase price of approximately $38,585.
to Bloomberg, the company’s latest acquisition was financed through the issuance and sale of common shares, a strategy that has been part of its broader capital allocation plan. In August, MicroStrategy conducted a 10-for-1 stock split to make its shares more accessible to investors and employees.
Based in Tysons Corner, Virginia, MicroStrategy began its Bitcoin acquisition strategy in 2020 as a hedge against inflation. Co-founder and executive chairman Michael Saylor has been a vocal advocate for Bitcoin, viewing it as a superior store of value compared to traditional assets like cash, bonds, or gold.
Despite the volatility in the cryptocurrency market, Saylor remains confident in Bitcoin’s long-term potential and continues to accumulate more digital assets.
Bitcoin Price Analysis
As reported by NewsBTC, Saylor revealed that he owns about $1 billion worth of BTC and has no plans to sell any of his holdings. He believes Bitcoin is a great investment for individuals, families, institutions, and even countries.
However, Saylor’s belief in BTC’s potential is further reflected in his prediction that the cryptocurrency could reach a value of $13 million by 2045, based on the belief that BTC will eventually evolve to reach 7% of the world’s capital.
Moreover, the company’s investments have led to a surge in MicroStrategy’s stock (MSTR), which has more than doubled this year, outperforming the approximately 40% increase in the Bitcoin price over the same period.
When writing, the BTC is trading at $58,820, up 2.3% in the last 24 hours and over 8% in the last seven days alone. This could potentially signal a continuation of the recovery seen not only in the BTC, but in the broader market, which has managed to endure notable spikes in volatility.
Featured image from DALL-E, chart from TradingView.com