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MicroStrategy, a prominent business intelligence firm led by CEO Michael Saylor, has expanded its Bitcoin holdings with the acquisition of an additional 3,000 Bitcoins.
Michael Saylor’s Announcement of Bitcoin Acquisition
Michael Saylor, the forever proponent of Bitcoin, shared the news of Microstrategy’s latest Bitcoin acquisition on X, revealing that MicroStrategy invested ~$155 million in the purchase of 3,000 BTC. In this acquisition, the average price per Bitcoin is highlighted at $51,813.
The purchase, made between February 15 and 25, 2024, comes at an average price of $51,813 per Bitcoin. As of February 25, MicroStrategy now holds a total of 193,000 Bitcoins, accumulated for approximately $6.09 billion. The average purchase price for the entire Bitcoin portfolio stands at $31,544.
MicroStrategy’s accumulation of 193,000 Bitcoins stands as a testament to Michael Saylor’s planning to buy Bitcoins forever.
Financial Implications and Strategy
MicroStrategy’s aggressive Bitcoin-buying strategy aligns with Michael Saylor’s long-term belief of Bitcoin as the ultimate “exit strategy,” and its superiority over traditional assets.
MicroStrategy continues to prioritize the secure management of its substantial Bitcoin holdings. Currently, 98% of the company’s BTC holdings are entrusted to Fidelity Custody, known for its robust security measures. To further diversify its asset management approach, MicroStrategy also utilizes Coinbase Prime. This dual custodial strategy enhances security and ensures comprehensive management of MicroStrategy’s cryptocurrency assets.
Also Read: MicroStrategy Twitter Account Hack: $424K Looted in Fake Ethereum Airdrop Scam
MSTR Stock Performance
In response to concerns about the potential impact of Bitcoin ETFs on MicroStrategy’s stock (MSTR), Michael Saylor remains unfazed. The impact of MicroStrategy’s Bitcoin acquisitions on its stock (MSTR) is evident in the pre-market hours, with a 1.71% gain, trading at $699.2, and poised to surpass $700.
The surge in Bitcoin prices in 2023 and 2024 has significantly contributed to MSTR’s impressive stock performance. Over the last month, MSTR stock has seen a 39% increase and a remarkable 160% surge in the past year. Since the beginning of 2023, MSTR stock has witnessed an extraordinary 316% rise.
Bitcoin’s recent price movement shows resilience, bouncing back 1% from a 24-hour low of $50,931 to the current trading price of $51,410. The trading volume has surged by 10% in the last 24 hours, signalling heightened interest among traders.