Business Markets News Report
December 28, 2023

MicroStrategy Acquires Bitcoins Worth $615.7 Million Amidst Spot Bitcoin ETF Anticipation

In Brief

MicroStrategy acquired 14,620 Bitcoins worth $615.7 million in cash amid rising expectations of spot Bitcoin ETF approval in January 2024.

MicroStrategy Acquires Bitcoin Worth $615.7 million, Amidst Spot Bitcoin ETF Anticipation

Software firm MicroStrategy acquired Bitcoins worth approximately $615.7 million in cash. The company, along with its subsidiaries, purchased around 14,620 Bitcoins at an average cost of approximately $42,110 from November 30 to December 26, according to regulatory filings.

“Due to its limited supply, Bitcoin offers the opportunity for appreciation in value if its adoption increases and has the potential to serve as a hedge against inflation in the long term.”

MicroStrategy stated in its latest quarterly report. 

The company began buying the cryptocurrency in 2020, along with its subsidiaries and now holds approximately 189,150 Bitcoins, acquired at a cost of about $5.9 billion. MicroStrategy emphasizes that its Bitcoin investments are intended for long-term holdings, expressing its intention to continue accumulating the world’s largest and most well-known cryptocurrency.

MicroStrategy’s decision to invest in Bitcoin to protect the value of its reserve assets contributed to the increased attractiveness of the company’s stock, which typically correlates with the performance of the digital asset. The MicroStrategy shares experienced an 8% surge after the news came out. The company has witnessed a surge of over 350% in its stock value this year, while Bitcoin itself has gained nearly 160%.

In September of this year, MicroStrategy announced it increased its Bitcoin holdings by acquiring 5,445 Bitcoins. The total cost of the acquisition was approximately $147.3 million, with an average per Bitcoin cost of $27,053, inclusive of all associated fees and expenses. Currently the company is one of the most notable institutional holders of Bitcoin. 

MicroStrategy’s Confidence in Bitcoin 

The announcement comes amid growing anticipation regarding the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC).

Over the past few months, there has been a surge in filings submitted to the regulator, including submissions from traditional financial entities such as BlackRock. Presently, around thirteen companies are awaiting potential SEC approval, with a final decision expected on 10th January 2024.

A spot cryptocurrency ETF would mirror the market price of the underlying crypto asset, providing investors with exposure to the token without the need to directly acquire the currency.

MicroStrategy’s strategic moves into Bitcoin have influenced the company’s stock performance, reflecting a notable surge. The company’s Bitcoin acquisitions showcase its confidence in the enduring value and stability of the digital asset, amidst growing anticipation surrounding the potential approval of a spot Bitcoin ETF.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

Hot Stories
Join Our Newsletter.
Latest News

The DOGE Frenzy: Analysing Dogecoin’s (DOGE) Recent Surge in Value

The cryptocurrency industry is rapidly expanding, and meme coins are preparing for a significant upswing. Dogecoin (DOGE), ...

Know More

The Evolution of AI-Generated Content in the Metaverse

The emergence of generative AI content is one of the most fascinating developments inside the virtual environment ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Jakov Buratović Reveals Lido’s Protocol Upgrade Process. What’s coming next?
Interview Software Technology
Jakov Buratović Reveals Lido’s Protocol Upgrade Process. What’s coming next?
April 23, 2024
How EigenLayer’s Free-Market Governance Model Is Changing Ethereum’s Security Landscape
Software Stories and Reviews Technology
How EigenLayer’s Free-Market Governance Model Is Changing Ethereum’s Security Landscape
April 22, 2024
Othentic Raises $4M Funding From Breyer Capital To Advance Development Of Modular Networks In Shared Security Environment
Business News Report Technology
Othentic Raises $4M Funding From Breyer Capital To Advance Development Of Modular Networks In Shared Security Environment
April 22, 2024
Celo Developer cLabs Proposes Launch Of Its Ethereum Layer 2 Solution On Optimism’s OP Stack
News Report Technology
Celo Developer cLabs Proposes Launch Of Its Ethereum Layer 2 Solution On Optimism’s OP Stack
April 22, 2024