MicroStrategy Incorporated, a leading business intelligence firm, has significantly bolstered its Bitcoin holdings, acquiring approximately 3,000 bitcoins for an estimated $155.4 million in cash. This acquisition, carried out between Feb. 15 and Feb. 25, 2024, highlights the company’s continued confidence in Bitcoin as a valuable digital asset. With this recent purchase, MicroStrategy’s total Bitcoin inventory has surged to approximately 193,000 bitcoins, cumulatively worth around $7.8 billion.
This strategic move comes when Bitcoin’s market dynamics increasingly attract institutional investors. MicroStrategy’s average acquisition cost for the newly purchased bitcoins is about $51,813 each, including fees and expenses.
As of Feb. 25, 2024, MicroStrategy’s total investment in Bitcoin and its subsidiaries reached approximately $6.09 billion, with an average purchase price of about $31,544 per Bitcoin.
Security concerns concerning MicroStrategy
The announcement of MicroStrategy’s latest Bitcoin acquisition coincided with an unfortunate security breach on the company’s X account, previously known as Twitter. A hacker exploited the account to post fraudulent links to fake token airdrops, stealing over $440,000 from unsuspecting users.
Despite these security concerns, the market’s response to Bitcoin and Bitcoin-related investment vehicles remains robust. Recent data indicates a growing interest in Bitcoin ETFs, which have seen significant inflows since their inception in early 2024.
Comparatively, Bitcoin ETFs have outperformed gold ETFs regarding asset accumulation, signaling a possible shift in investor preference towards digital assets over traditional safe havens like gold. This trend is supported by predictions from Bloomberg analysts, suggesting that Bitcoin ETFs could surpass gold ETFs in assets under management within the next two years.
MicroStrategy’s long-term vision
MicroStrategy’s unwavering commitment to Bitcoin is evident in its continuous investment strategy and the bullish outlook of its founder and chairman, Michael Saylor. Last week, Saylor revealed that selling Bitcoin now is a huge mistake as he tends to hold the cryptocurrency for a long time. He also asserted that Bitcoin is “technically superior” to traditional assets like gold, real estate, and the S&P 500.
