On Wednesday, MicroStrategy (MST) announced the purchase of 14,620 bitcoins at an average price of $42,110 per coin, increasing its holding to $5.9 billion. According to a tweet from Michael Saylor, the company’s executive chairman, the purchased bitcoin was worth $615.7 million.
This purchase followed another purchase of 5,445 BTC in September. Michael Saylor has a strong belief in the long-term potential of Bitcoin. MicroStrategy has the highest holding of Bitcoin, accounting for 0.7% of the entire market capitalization.
MicroStrategy CEO Michael Saylor announced that he believes that cryptocurrency is the future currency; therefore, he is unwavering in his positive outlook for Bitcoin. Although the cryptocurrency market is fluctuating, he has faith in Bitcoin and the approval of the ETF, which is set to increase Bitcoin’s price in January. Bitcoin is a growing asset, and its value is seen as a hedge against inflation; therefore, institutions are taking advantage of this by investing in the ever-evolving cryptocurrency market. MicroStrategy is among the institutions that are investing in Bitcoin with the ongoing trend from different institutions.
MicroStrategy Stock Surges to 300% in 2023
The purchase of 14,620 Bitcoin has increased the institution’s value today by 3.2% since the company announced it would consistently invest in Bitcoin as a long-term investment. The company is not slowing down; it is instead increasing its efforts and recording a value of $5.9 billion. The decision of the SEC on ETF approval might skyrocket the value of the institution if, by January 10, the decision is made in favor of cryptocurrency. MicroStrategy has been accumulating Bitcoin since 2020. Yesterday’s act shows how committed the institution is to cryptocurrency.
The increase in Bitcoin price ensures the institution is kept on track, contributing heavily to the success of MicroStrategy. Moreover, analysts have an optimistic view that Bitcoin is set to go bullish. The halving of Bitcoin, which is set to cause great scarcity, and the approval of spot Bitcoin Exchange-Traded Funds (ETF) by the SEC in the U.S. The approval of the ETF will increase investment in the cryptocurrency market.
From Saylor’s perspective, it’s unwise to save in a fiat currency that is perpetually debased when he can instead put the company’s treasury in a liquid asset that doesn’t suffer from dramatic supply inflation. Additionally, Saylor believes that Bitcoin represents a form of gold, only that Bitcoin is harder, smarter, and stronger than gold. The purchase of Bitcoin marks MicroStrategy as the major holder of cryptocurrency.