MicroStrategy’s Bitcoin plan gobbles another $5.4b

by

As a seasoned researcher with a knack for deciphering market trends, I find MicroStrategy’s Bitcoin strategy intriguing. Michael Saylor’s bold move has not only solidified his company’s position as a major player in the crypto space but also sparked a wave of adoption among other firms. It’s fascinating to see companies like Metaplanet, Semler Scientific, and Genius Group jumping on the BTC wagon.

According to Michael Saylor, the executive chairman of MicroStrategy, the company’s overall Bitcoin holdings have been expanded to a total of 386,700 units.

On November 25th, MicroStrategy disclosed that they had bought 55,000 Bitcoins (BTC) for their digital assets portfolio. This recent acquisition cost the software firm approximately $5.4 billion, which equates to an average price of around $97,862 per Bitcoin.

Since 2020, it’s cost MicroStrategy approximately $21.9 billion to build up its Bitcoin holdings. During this four-year span, the value of these Bitcoins has risen significantly, resulting in over $15.2 billion in potential profits for the company. The founder of MicroStrategy stated that they have no intention of selling their Bitcoins.

Saylor unveiled a three-year plan, committing approximately $42 billion to purchase Bitcoin, with the aim of further bolstering the company’s financial stability by increasing its Bitcoin holdings.

MicroStrategy recently purchased 55,500 Bitcoins for approximately $5.4 billion, which equates to around $97,862 per Bitcoin. This acquisition has resulted in a quarter-to-date (QTD) yield of 35.2% and a year-to-date (YTD) yield of 59.3%. As of November 24, 2024, we hold a total of 386,700 Bitcoins, which were acquired for approximately $21.9 billion, with each Bitcoin costing around $56,761. This is the current status of MicroStrategy’s Bitcoin holdings ($MSTR).

— Michael Saylor⚡️ (@saylor) November 25, 2024

Entities jump on MicroStrategy’s BTC wagon

The significant achievement of Saylor’s Bitcoin investment strategy has motivated other corporations to follow suit. Companies such as Metaplanet, Semler Scientific, and Genius Group have announced their own Bitcoin holdings, intending to capitalize on the digital currency’s rapid increase in value.

Eric Semler, founder of Semler Scientific, revealed a $29.1 million Bitcoin purchase just an hour following Michael Saylor publishing MicroStrategy’s new holdings. Both companies also boast over 50% year-to-date returns from investing in the world’s most significant cryptocurrency.

What’s next for Bitcoin?

Bitcoin experienced a dip after approaching the historic milestone of $100,000 for the first time. On November 24th, BTC peaked at $99,645, following a streak of unprecedented highs driven primarily by speculation surrounding Donald Trump’s re-election.

According to Ruslan Lienka, YouHodler’s chief of markets, the process of determining BTC’s price may lead it to reach six figures, but a period of consolidation could first take place. In an email to crypto.news, Lienka pointed out that altcoins might surge while Bitcoin gathers more strength for another attempt at reaching new record highs.

Over the last seven days, my focus as a researcher has been on the increased activity within secondary major cryptocurrencies like XRP and SOL. Notably, Bitcoin seems to be taking a short break during this period, which could signal the beginning of an alt-season. On the other hand, Bitcoin appears to be experiencing a corrective phase, possibly due to profit-taking. This correction might lead to price consolidation before a potential surge towards the significant psychological threshold of $100,000.

Ruslan Lienka, YouHodler chief of markets

Read More

2024-11-25 19:46