Bittime – MicroStrategy is a leading business intelligence company that is back in the headlines after adding to their Bitcoin (BTC) holdings .
This strategic move comes amidst the ongoing crypto price rally, further solidifying MicroStrategy's position as a leader in Bitcoin adoption among institutions.
With this latest acquisition, MicroStrategy's total Bitcoin holdings reach 205,000 BTC, slightly surpassing the amount held by BlackRock 's iShares Bitcoin Trust (IBIT) , one of the world's largest Bitcoin ETFs.
This increase in holdings was driven by MicroStrategy's strong belief in the future of Bitcoin, expressed by the company's founder, Michael Saylor.
MicroStrategy's Aggressive Acquisition Strategy
On Monday, MicroStrategy announced that it had used proceeds from its convertible notes issuance and excess cash to purchase an additional 12,000 Bitcoins worth approximately $820 million.
The move follows plans the company announced a week earlier, in which it intended to use funds from the issuance of $600 million worth of convertible notes for further Bitcoin acquisitions.
This senior unsecured bond issued by MicroStrategy offers interest paid semi-annually, starting on September 15, 2024.
The decision to increase Bitcoin holdings coincided with the achievement of a new all-time high price for Bitcoin, which surpassed $72,000 on the same day.
At that price, MicroStrategy's Bitcoin holdings are now worth around $14.9 billion. This figure is more than double their initial purchase price of around $6.9 billion.
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MicroStrategy Hoists Bitcoin Prices to Skyrocket!
Although the most recent purchases were made at an average price of $68,477 per Bitcoin, the overall average price for the 205,000 BTC MicroStrategy holds stands at around $33,700.
In an interview on Monday (11/03/24), Michael Saylor called Bitcoin a "digital asset" that "will replace gold" as a major hedge asset. He emphasized that Bitcoin's main function is as a long-term store of value.
The recent increase in Bitcoin prices seems to be a validation of MicroStrategy's buy-and-hold Bitcoin strategy in all market conditions. Saylor stated that his company plans to hold Bitcoin for 100 years.
"The price correction from $66,000 to $16,000 then has driven out short-term investors and distrusters," Saylor said. "We were prepared for the price drop, and now we're enjoying the rise."
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MicroStrategy vs Bitcoin ETF: Which is More Attractive?
MicroStrategy's own share price jumped around 12.5% on Monday. This increase is even more significant compared to the 50% increase in Bitcoin prices in one month.
Historically, MicroStrategy stock has often been considered a proxy for Bitcoin. However, with the presence of a Bitcoin ETF approved by the Securities and Exchange Commission (SEC) in January, the Bitcoin investment landscape is now changing.
Analysts see that one of the advantages of investing in MicroStrategy shares is that there are no management fees charged to shareholders.
Additionally, MicroStrategy shareholders can also benefit from the company's use of leverage, as well as protection from sharp price declines.
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BTC/USDT Bitcoin Price Today
Source: Bittime.com
On March 13, 2024, the price of Bitcoin BTC/USDT was at $72,198 per coin, up 0.46% in 24 hours and 13% in the past week.
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Conclusion
Based on data from BitMEX Research, MicroStrategy's Bitcoin holdings of 205,000 BTC slightly exceed BlackRock's iShares Bitcoin Trust (IBIT) holdings of around 198,000 BTC.
While the Grayscale Bitcoin Trust ETF (GBTC) remains the category leader with total assets under management of $28 billion, the iShares Bitcoin Trust follows in second place with about $13.6 billion.
Interestingly, MicroStrategy, previously known as a software company, has now transformed into a "Bitcoin development company" according to Saylor.
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"A large part of our company's value is based on our unique ability to issue securities and purchase Bitcoin with convertible debt, equity and other instruments," Saylor explained on Monday. "This transition was only possible because of our healthy software business."
MicroStrategy's bold step in accumulating Bitcoin certainly triggered various reactions. Proponents of this strategy see it as a visionary move that will bring significant benefits in the future. While other parties question the risks and high volatility inherent in Bitcoin.
How to Buy Bitcoin (BTC) on Bittime
You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Bitcoin (BTC) is available on Bittime with the market pair BTC/IDR . To be able to buy BTC/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Bitcoin (BTC) on Bittime.
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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