MicroStrategy Continues Bitcoin Buying Spree Amid ETF Anticipation

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Key takeaways:

  • MicroStrategy Expands Bitcoin Holdings, Surpassing $8 Billion in Value
  • The Company Has Invested $5.9 Billion in Establishing Its Bitcoin Treasury

In the midst of growing speculation surrounding the potential approval of a Bitcoin exchange-traded fund (ETF) in the United States, business intelligence firm MicroStrategy is making headlines by increasing its Bitcoin holdings. 

According to a recently filed Form 8-K, the company invested a staggering $615.7 million in its latest acquisition, purchasing Bitcoin at an average price of $42,110 per coin. These acquisitions took place between November 30 and December 26.

MicroStrategy’s commitment to Bitcoin is evident in its current ownership of 189,150 bitcoins, acquired at an average price of $31,168. 

Microstrategy Continues Bitcoin Buying Spree Amid Etf Anticipation

The total expenditure on these holdings amounts to $5.89 billion. At present, the value of MicroStrategy’s Bitcoin holdings has soared to $8.1 billion, representing a significant paper gain of $2.2 billion.

This move follows MicroStrategy’s earlier Bitcoin purchase on September 25, where the company acquired 5,445 BTC at an average cost of $27,053 per bitcoin, spending $147.3 million in cash. 

The cumulative purchases by MicroStrategy and its subsidiaries occurred between August 1 and September 24, as reported in a Form 8-K filing with the US Securities and Exchange Commission (SEC).

Michael Saylor, co-founder and executive chairman of MicroStrategy, initiated the company’s Bitcoin investment strategy on August 11, 2020, with a $250 million investment in the cryptocurrency. 

Saylor has consistently referred to Bitcoin as digital gold” and a superior alternative to holding cash.

In a November earnings call, Saylor expressed optimism about the potential approval of spot Bitcoin ETFs, anticipating that it would be a “catalytic event” benefiting companies with Bitcoin exposure. 

He mentioned the likelihood of increased analyst coverage from traditional Wall Street banks as these ETFs make Bitcoin exposure more accessible, leading to heightened awareness and interest.

Addressing concerns about potential Bitcoin ETF launches, Saylor highlighted the advantage of MicroStrategy’s approach. Unlike ETFs that charge fees, MicroStrategy offers investors exposure to Bitcoin without additional costs.

This recent Bitcoin acquisition by MicroStrategy reinforces the company’s steadfast commitment to Bitcoin investment, aligning with the vision of its co-founder and notable Bitcoin advocate, Michael Saylor.

 The timing of this announcement is noteworthy, occurring just weeks before January 10, a date widely anticipated for potential SEC approval of a spot Bitcoin ETF or multiple ETFs.

In a separate disclosure, MicroStrategy revealed that it successfully raised $610.1 million through its previously announced at-the-market (ATM) shares offering of $750 million. As of early December, the company is reported to be sitting on approximately $2 billion in profit from its Bitcoin holdings, further solidifying its position in the evolving landscape of digital assets.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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