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MicroStrategy Just Bought Another $4.6 Billion Worth of Bitcoin

MicroStrategy Just Bought Another $4.6 Billion Worth of Bitcoin

CointimeCointime2024/11/19 07:09
By:Cointime

From decrypt by Ryan S. Gladwin

MicroStrategy Just Bought Another $4.6 Billion Worth of Bitcoin image 0

MicroStrategy, a software firm founded by  Michael Saylor , disclosed Monday morning that it has bought another 51,780  Bitcoin  at an average price of $88,627, totaling $4.6 billion, according to an  SEC filing .

As he always does, the company’s Executive Chairman, Saylor, boasted about the purchase on  Twitter  by noting that the company’s holdings now total 331,200 Bitcoin. The software company's Bitcoin stash was acquired for $16.5 billion in total, but thanks to the recent price rally, it's now worth almost double that at $29.65 billion.

The latest move comes after the firm  purchased $2 billion Bitcoin  just last week, at an average price of $74,463. Combined, that means MicroStrategy has bought 51,780 Bitcoin over the past seven days. 

For perspective: This figure is twice the global  Bitcoin exchange-traded product  (ETP) inflow over the past week, according to  Vetle Lunde , Head of Research at K33Research.

Bitcoin’s price has been surging since  Donald Trump secured a second term  as President of the United States. The pro-crypto candidate has made a range of  promises  to the industry, from creating a  strategic Bitcoin reserve to firing SEC Chair  Gary Gensler .

The orange coin has  broken its all-time high price mark multiple times  over the past two weeks, with its latest peak being $93,477, according to  CoinGecko . With this,  MicroStrategy's stock price also hit an all-time high , surpassing a market capitalization of $69 billion last week, thanks to the firm stockpiling Bitcoin.

  Last week, according to  Google Finance , MSTR traded at a peak of $383 and has since fallen to a current price of about $350. Meanwhile, Bitcoin has risen by nearly 11% over the past 7 days to a current price of $90,765.

Founded in 1989, MicroStrategy was originally a data intelligence software company. However, in 2020, the  firm bought $250 million worth of Bitcoin  as Saylor looked to spice up the company’s books during the pandemic.

Since then, the firm’s destiny has been closely tied with Bitcoin, with MicroStrategy even rebranding itself as a Bitcoin development company. In October, MicroStrategy outlined a plan to  purchase $42 billion worth of Bitcoin  over the next three years.

Saylor has set jaw-droppingly bullish targets for Bitcoin. In September, the firm’s founder predicted that  Bitcoin would rise to a price of $13 million per coin  over the next 21 years. From today’s price, that would represent a 14,222% increase.

These targets help explain why MicroStrategy has continued to acquire Bitcoin amid its recent pump, despite the firm already being the  public company with the largest Bitcoin holding  with more than 1% of the total supply.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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