As a seasoned investor with a penchant for the unconventional, I find MicroStrategy’s latest Bitcoin acquisition to be nothing short of a bold and strategic move. Having weathered several market cycles and witnessed firsthand the transformative power of disruptive technologies, I can appreciate the visionary leadership displayed by Michael Saylor and his team.
Once more, MicroStrategy, a notable business intelligence firm, is garnering attention following its recent purchase of 18,300 Bitcoins, which are estimated to be worth around $1.11 billion.
In a recent SEC filing, the company made public its biggest acquisition since more than three years ago. This deal occurred from August 6 to September 12, 20241.
MicroStrategy Now Holds 1% Of All BTC Ever Issued
Through this transaction, MicroStrategy now owns around 244,800 Bitcoins in total, which equates to a value of roughly $14 billion. It’s worth noting that this amount represents about 1% of all Bitcoins ever mined. The company acquired these Bitcoins at an accumulated cost of approximately $9.45 billion, with an average purchase price per Bitcoin of around $38,585.
As a researcher, I’ve discovered that our latest acquisition was funded through the issuance and subsequent sale of common shares, which is aligned with our broader strategy for capital allocation. Notably, MicroStrategy recently implemented a 10-for-1 stock split to enhance the accessibility of its shares among investors and employees.
Located in Tysons Corner, Virginia, MicroStrategy started its Bitcoin purchase approach back in 2020 as a means to shield against inflation. Co-founder and chairman Michael Saylor, an outspoken proponent of Bitcoin, sees it as a more valuable form of savings compared to conventional assets such as cash, bonds, or gold.
Regardless of the ups and downs in the crypto world, Saylor stays optimistic about Bitcoin’s future prospects and keeps amassing additional digital resources.
Bitcoin Price Analysis
According to NewsBTC, Michael Saylor disclosed that he possesses approximately $1 billion in Bitcoin and intends to keep all of it. He advocates that Bitcoin serves as an excellent investment opportunity for individuals, households, organizations, and even nations.
Yet, Saylor’s confidence in Bitcoin’s capability is also demonstrated through his forecast that the digital currency might attain a worth of $13 million by 2045, considering that he anticipates Bitcoin will ultimately represent approximately 7% of the global capital.
To add to that, the company’s financial commitments have resulted in a significant rise in MicroStrategy’s stock (MSTR). In fact, MSTR has more than doubled this year, contrasting with Bitcoin’s approximate 40% growth during the same timeframe.
In the course of writing, Bitcoin (BTC) is currently being traded at approximately $58,820. It has experienced a 2.3% increase over the past 24 hours and a significant surge of around 8% in just the last seven days. This rise might be indicative of an ongoing recovery not only for BTC but also for the broader market. Despite experiencing considerable fluctuations, the market has remained resilient.
Regardless, the potential for Bitcoin (BTC) to climb further depends significantly on its success or failure in surpassing its most substantial resistance barrier yet – the 200-day exponential moving average on the daily BTC/USDT chart, represented by the yellow line above at approximately $59,775.
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2024-09-13 18:58