MicroStrategy’s Record Month: $13.5B Bitcoin Buy Yields 149,880 BTC

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As a seasoned financial analyst with over two decades of experience in the stock market, I must admit that the current Bitcoin surge and MicroStrategy’s strategic move have piqued my interest. The impressive performance of Bitcoin, coupled with MicroStrategy’s ambitious plan to become the largest BTC bank, is indeed a game-changer in the financial world.

In the last three months, Bitcoin‘s exceptional performance, with a current price of approximately $96,862 and a market cap of around $1.91 trillion, has noticeably increased MicroStrategy Inc.’s (NASDAQ: MSTR) stock value. This company specializes in enterprise analytics and mobility software. As a significant Bitcoin holder, MicroStrategy’s stock market price has surged more than 500% year-to-date (YTD), trading above $375 during the mid-New York session on Wednesday.

A global conglomerate valued at $83.9 billion has drawn interest from investors worldwide, even European central banks. The impressive performance over the past year has inspired approximately a dozen international firms to mimic this approach by incorporating Bitcoin into their strategic reserves.

Furthermore, countries, spearheaded by the United States, are actively considering adopting Bitcoin as part of their strategic reserves in an attempt to combat the looming debt crisis.

MicroStrategy Record Month of Bitcoin Purchases

Michael Saylor posted on X on December 4th that MicroStrategy acquired approximately 149,880 Bitcoins in November for a total of around $13.5 billion. This massive Bitcoin purchase is part of their larger goal, announced earlier, to raise up to $42 billion over the next three years, with the aim of further enhancing their Bitcoin strategy.

As a researcher, I’ve discovered that our company has strategically purchased Bitcoins at an approximate average price of $90,231 each. This move generated a net gain of approximately 97,500 BTC for our shareholders by the end of the month. It’s worth noting that we’ve experienced significant backing from institutional investors who are keen on expanding their portfolios into the burgeoning cryptocurrency sector.

“Creating shareholder value and BTC yield! More companies should consider the benefit of adding BTC as a treasury asset,” Fred Thiel, the Chairman and CEO of MARA Holdings (NASDAQ: MARA), noted.

According to Coinspeaker’s report, MicroStrategy intends to keep its Bitcoin investment long-term and aims to become the world’s largest Bitcoin bank. On December 2, the company bought 15,400 Bitcoins for approximately $1.5 billion. This recent purchase brings their total Bitcoin holdings to 402,100, resulting in a 63% yield on their Bitcoin investment so far this year.

Peter Schiff, the economist from Europac and Schiffgold, has expressed criticism towards the company’s success. He pointed out that shareholders of MSTR have endured continuous dilution in the stock market.

Schiff pointed out that the upcoming bear market for Bitcoin could put the company and its shareholders in a vulnerable or unstable situation.

Market Impact

Over the past year, I’ve seen Bitcoin, my preferred digital currency, shine as a top-performing asset. This surge can be attributed, in part, to Saylor’s strategic periodic investments. In the last two weeks, the coin has found stability around $96k, after an exhilarating rally that followed Donald Trump’s resounding victory in early November.

Based on an examination of blockchain information, it appears that approximately 400 new Bitcoin investors (each owning between 100 and 10,000 Bitcoins) have joined the network over the past fortnight. This influx could potentially rekindle the upward trend surpassing $100k in the immediate future, primarily driven by robust underlying factors.

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2024-12-04 22:48