MicroStrategy, spearheaded by Michael Saylor, has bolstered its Bitcoin reserves to a staggering 189,150 BTC, valued at over $8 billion as of December 27.
The company made a strategic move by acquiring an additional 14,620 Bitcoin (BTC) at an average price of $42,110 per coin, marking an investment of $615.7 million, as confirmed by Michael Saylor, the founder of the firm established in 1989. This latest purchase adds to MicroStrategy’s consistent trend of purchasing BTC, initiated in 2020 amidst the global pandemic, driven by Saylor’s intent to hedge against inflationary risks. To date, the company has infused approximately $5.9 billion into Bitcoin.
MicroStrategy’s investment in BTC has yielded substantial returns, netting around $2 billion in profits from its BTC holdings, accumulated through a blend of cash, debt, and equity. This investment strategy has not only been lucrative in terms of profits but has also significantly bolstered MicroStrategy’s stock. As per Google Finance, the company’s stock surged by over 300% in 2023 alone, reaching $603.89 at the time of reporting.
Simultaneously, the decision to further invest in Bitcoin aligns with the growing interest from both Wall Street veterans and native crypto asset managers seeking approval for a spot BTC ETF—a move set to provide American investors with exposure to Bitcoin. Notably, 13 entities, including BlackRock, Hashdex, and ARK 21Shares, have submitted applications to the U.S. Securities and Exchange Commission (SEC) for spot BTC ETFs. While the SEC’s decision remains pending, engagements with these firms have led to amendments in filings, sparking speculations that approvals for spot BTC ETFs in America might be on the horizon.
Saylor expressed optimism, stating that the approval of spot Bitcoin ETFs could mark a pivotal moment for both traditional finance and the crypto industry. Experts and speculators anticipate a decision in early January 2024, approximately three months ahead of BTC’s halving event in April, shaping the trajectory of Bitcoin’s accessibility and adoption in mainstream financial markets.
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