As a seasoned analyst with over two decades of market experience under my belt, I find MicroStrategy’s latest Bitcoin buying spree both intriguing and strategic. While some critics may argue that the timing is less than ideal given the recent market correction, I see it as a bold move by Michael Saylor to capitalize on a potential dip.
For the seventh week in a row, MicroStrategy expanded its Bitcoin purchases, thereby reinforcing its status as the corporation with the most significant Bitcoin holdings, valued at approximately $45 billion in total assets.
Michael Saylor, the executive chairman of MicroStrategy, disclosed that the firm purchased 5,262 Bitcoins (BTC) at a total cost of $561 million, which averages out to approximately $106,662 per Bitcoin. This acquisition was made before the recent market downturn. With this latest purchase, MicroStrategy now owns a staggering 444,262 Bitcoins, making it the leading institutional Bitcoin holder.
Initially investing about $27.7 billion, MicroStrategy currently shows approximately $15 billion in potential gains, even amidst the recent fall in the cryptocurrency market.
Critics, referring to the difference between Bitcoin’s current value and MicroStrategy’s purchase price, were a common theme in Michael Saylor’s recent update about topic X.
According to a recent stance by the Federal Reserve, a widespread market adjustment caused Bitcoin to trade below $95,000 at this moment. Critics, including American stockbroker and economist Peter Schiff, have challenged MicroStrategy’s strategy, labeling their latest acquisition as one of the smallest in seven weeks. Schiff contends that MicroStrategy should prioritize purchasing dips to boost shareholder value instead.
It appears that you’re finding it challenging to sustain Bitcoin’s growth with your current resources. Moreover, this transaction marks your lowest buy and the first instance where your average cost exceeded the market price on the day of purchase disclosure.
— Peter Schiff (@PeterSchiff) December 23, 2024
Beyond its Bitcoin investment, MicroStrategy also revealed through a Form 8-K submission to the Securities and Exchange Commission that they offloaded around 1.32 million shares of MSTR convertible bonds, amassing over $7 billion. This money is said to be earmarked for additional Bitcoin investments.
As a researcher, I’m excited to share that while Saylor made the smallest purchase in seven weeks, Metaplanet – often referred to as Japan’s equivalent of MicroStrategy – has just made its largest Bitcoin investment yet. This Tokyo-based company has injected approximately $60.6 million into their Bitcoin reserves.
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2024-12-23 19:08