Key Points
- MicroStrategy, led by Michael Saylor, has increased its Bitcoin holdings to 439,000 BTC.
- The firm’s latest Bitcoin purchase is worth $1.5 billion, bringing the total value of its Bitcoin stash to over $45 billion.
Michael Saylor’s company, MicroStrategy, has further solidified its position as the leading corporate holder of Bitcoin by increasing its total holdings to 439,000 BTC.
MicroStrategy’s Latest Bitcoin Purchase
On December 16, Saylor revealed that the company had made another substantial Bitcoin purchase. The latest acquisition, worth $1.5 billion, consisted of 15,350 BTC purchased at an average price of $100,386, as per regulatory filings.
The total value of MicroStrategy’s Bitcoin holdings now exceeds $45 billion. This comes as Bitcoin reached a new all-time high of $106,000. Of the total value, approximately $18 billion represents unrealized profits, with the company’s initial capital investment since 2020 estimated at $27.1 billion.
Controversial Investment Strategy
MicroStrategy’s strategy, dubbed the “infinite money glitch”, has sparked conversations in both traditional finance and crypto communities. Saylor intends to buy $42 billion worth of Bitcoin by 2028 by issuing debt to raise capital from shareholders. Other companies, such as Marathon Digital and Riot Platforms, have adopted this strategy, accumulating more Bitcoin by offering convertible notes.
This approach has garnered MicroStrategy billions and positioned it as the leading private Bitcoin holder. The Nasdaq exchange is even considering adding MicroStrategy to the prestigious Nasdaq-100 index, which would grant the company increased investor exposure.
However, this debt-for-Bitcoin strategy has also faced criticism. Saylor’s plan heavily depends on Bitcoin maintaining its upwards trend. While many believe this is likely, a significant market correction could potentially jeopardize MicroStrategy’s position and trigger a market downturn similar to the one seen in 2022.
Positive Outlook for Bitcoin
Despite the controversy, Saylor’s unwavering support for Bitcoin has earned him praise from crypto advocates. They highlight bullish indicators to counter skepticism.
The U.S. is moving closer to passing legislation for a strategic Bitcoin reserve, both at the federal and state levels. The global rush for Bitcoin intensified following Donald Trump’s presidential victory over Kamala Harris.
Furthermore, Wall Street, the world’s largest capital market, has over $114 billion invested in spot Bitcoin exchange-traded funds, just one year after their introduction.