MicroStrategy has announced the acquisition of an additional 3,000 bitcoins (BTC) at approximately $155 million. This purchase was executed at an average price of $51,813 per bitcoin, indicating the company’s ongoing commitment to increasing its *BTC* holdings amidst fluctuating market conditions.
As of February 25, 2024, MicroStrategy’s bitcoin portfolio has swelled to 193,000 BTC, accumulated at an approximate total investment of $6.09 billion. The average purchase price across their entire bitcoin holdings stands at $31,544 per bitcoin. This strategic accumulation positions MicroStrategy as one of the leading corporate investors in the cryptocurrency space, with its holdings reflecting a significant portion of its investment strategy and balance sheet.
Michael Saylor, CEO of MicroStrategy, has been a vocal advocate for Bitcoin, viewing it as a superior asset class that offers unmatched technical advantages over traditional investment vehicles. In recent statements to Bloomberg TV, Saylor highlighted the transformative impact of Spot ETFs in bringing institutional money into the bitcoin ecosystem, a move that he believes is digitalizing capital at an unprecedented rate.
“*Hundreds of millions of dollars of capital flow daily from the analogue ecosystem into the digital economy.”
Saylor remarked, emphasizing the substantial daily capital migration into the digital realm. He further pointed out that bitcoin’s market capitalization, slightly over a trillion dollars, is poised for growth as it begins to rival that of gold, real estate, and the S&P index, which enjoy substantially higher market capitalizations.
Strategic Long-term Holding
Saylor reiterated his confidence in Bitcoin, expressing his belief that capital will flow from those asset classes into Bitcoin because Bitcoin is technically superior, so there’s no reason to sell the winner and buy the losers. This conviction underpins MicroStrategy’s strategy of not selling any BTC from its balance sheet, which aligns with its long-term investment perspective.
MicroStrategy’s journey into bitcoin investment began in August 2020, marking a pivotal shift in the company’s investment strategy towards digital assets. Since then, it has progressively increased its bitcoin holdings, with a notable purchase of 850 BTC for $37.2 million just last month. With bitcoin’s price hovering around $51,800, according to CoinMarketCap, MicroStrategy’s assets are now valued at approximately $9.8 billion, showcasing its investment strategy’s substantial growth and success.
As the digital economy continues to evolve, MicroStrategy’s aggressive accumulation of Bitcoin underscores its belief in the digital currency’s value proposition. It sets a benchmark for other institutional investors considering cryptocurrency as a viable component of their investment portfolio.
