American-based software and business intelligence firm MicroStrategy disclosed in its Wednesday, December 27 filing with the US securities watchdog adding Bitcoin worth $616 million.
The firm, founded by Michael Saylor, informs the Securities and Exchange Commission that it added 14,620 Bitcoins, raising its holdings to over $8 billion. The SEC filing indicates that the firm has incurred $5.9 billion in building its Bitcoin treasury.
MicroStrategy Acquires Bitcoin Worth $616 Million
MicroStrategy’s chair, Michael Saylor, affirms the disclosure that it spent $616 million to purchase 14,620 Bitcoin tokens from November 30 to Tuesday, December 26. The Virginia-headquartered firm indicates that it acquired the additional bitcoins, spending $42,110 per coin.
The additional acquisition cements MicroStrategy as the leading corporate holder of Bitcoin, with 189,150 valued at $8.03 billion relative to the prevailing prices.
MicroStrategy Retains the Buy Decision Despite Rising Prices
The Wednesday filing shows MicroStrategy incurred larger expenditures to acquire fewer Bitcoins. The previous month’s filing revealed that the Saylor-chaired firm announced spending $ 593.3 million to add 16,130 Bitcoins.
The SEC filing indicates that MicroStrategy spent $22.7 million more despite acquiring 1,510 less owing to the sustained price pump realized by Bitcoin.
The firm involved in selling data-analyzing software has its Bitcoin stockpile, each costing $31,168. The decision to build Bitcoin treasury is paying off, given that the token’s price per CoinGecko data hovered around $42900, though it slid to test $42,470.
Reflecting on MicroStrategy Journey to Acquire Digital Gold
The journey to build the present Bitcoin treasury traces to the August 11 2020, decision when the chief executive struck the buying masterplan with a $250 million investment. The company has sustained the buying strategy for what Saylor labelled digital gold, which is better than holding cash.
On multiple occasions, Saylor has advocated for a buy-and-hold strategy for long-term holding of bitcoin, which yields better returns for the firm’s shareholders. Besides, it offers a better alternative to overcome the inevitable inflation recently witnessed as the US Federal Reserve devoted itself to resolving by deploying hawkish policies.
Saylor persuaded the MicroStrategy board to support the Bitcoin-buy initiative. While the top-ranked crypto by market capitalization suffers short-term volatility, it has sustained value increase in its 14-year lifetime.
Saylor explained in 2021 that MicroStrategy sought a ten-year investment, prompting a reflection of Bitcoin’s price over the 10-year course as not volatile. Instead, the price has sustained its pump.
MicroStrategy’s Bitcoin Turns Profitable in 156% Year-to-date Rally
The move to invest in Bitcoin is paying off, with MicroStrategy stock listed on Nasdaq under the MSTR ticker, which has rallied 322% since August 2021.
Saylor illustrated that acquiring MSTR stock offers a safe channel for investors to realize exposure to the digital asset. Some analysts have contested the argument amid speculation that the spot Bitcoin exchange-traded fund (ETF) approval would make it less appealing to investors.
The likelihood of the US securities regulator approving pending bids from 14 firms is edging closer. Such manifests in the series of dialogues held with various applicants. Besides, the Securities and Exchange Commission set Friday December 29 as the deadline for submitting amended applications for spot Bitcoin ETF.
Salyor’s MicroStrategy is not derailed from building the Bitcoin treasury amid the anticipated approval of spot Bitcoin by January 10.
The move to acquire additional Bitcoins places MicroStrategy in a privileged position, given that few public tech companies hold the article. Besides crypto miners, electric automaker Tesla has held Bitcoin since it began buying some in February 2021. Nonetheless, the Elon Musk-led firm currently has 9,720 Bitocins valued at $413.8 million per current price.
While the Bitcoin price has remained in the red in the past 24 hours, CoinGecko data shows the coin is up by 11.3% in its 30-day run and 156.4% in the year-to-date rally.
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