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MicroStrategy Increases Bitcoin Holdings with $155 Million Purchase

MicroStrategy, led by Michael Saylor, has expanded its Bitcoin holdings with the cryptocurrency’s recent surge in value, rising from approximately $41,000 earlier in February to over $50,000 as the month concludes.

The company has acquired an additional 3,000 Bitcoin (BTC), amounting to an estimated $155 million at an average price of $51,813 per BTC in its latest purchase. With this acquisition, MicroStrategy now possesses a total of 193,000 BTC, solidifying its position as one of the largest corporate holders of cryptocurrency.

MicroStrategy initially entered the Bitcoin market in 2020 amidst concerns about inflation and the economic impact of the COVID-19 pandemic. Saylor’s strategy was to use BTC as a hedge against the weakening U.S. dollar. Since then, the company has invested approximately $6 billion in its crypto holdings, which are now valued at nearly $10 billion based on current market prices. This has resulted in over $4 billion in profits from its Bitcoin investment.

Saylor has been a vocal advocate for Bitcoin, praising its design and scarcity model. He emphasizes the demand-supply dynamics of Bitcoin, highlighting its capped supply of 21 million coins and the periodic halving events that ensure scarcity. Saylor also attributes the recent influx of institutional funds into Bitcoin to the approval of spot BTC exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). These ETFs have attracted over $15 billion in assets under management (AUM), backed by more than 250,000 Bitcoin.

MicroStrategy’s commitment to Bitcoin remains steadfast, with Saylor declaring that the company has no intentions of selling its crypto holdings. Instead, MicroStrategy plans to continue accumulating Bitcoin, affirming its confidence in the long-term potential of the cryptocurrency.

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