As the Bitcoin (BTC) price managed to contain its losses to $42,00 after a sell-off earlier today, big players are making the most of the dip. In the latest announcement, MicroStrategy Chairman Michael Saylor declared that his firm has made a fresh purchase of $615 million worth of Bitcoins.
In a recent announcement, MicroStrategy Chairman Michael Saylor revealed the acquisition of an additional 14,620 BTC for approximately $615.7 million. The average purchase price per Bitcoin stood at $42,110. As of December 26, 2023, MicroStrategy’s total Bitcoin holdings reached 189,150 BTC, acquired for around $5.9 billion. The average cost per Bitcoin in this extensive holding stands at $31,168. This move reaffirms MicroStrategy’s commitment to Bitcoin as a strategic part of its treasury reserve.
This is the first major purchase from MicroStrategy after last month’s 155 BTC purchase. The company holds the coveted position of being the largest private company to hold the most number of Bitcoins on its balance sheet.
The MicroStrategy stock (NASDAQ: MSTR) has gained twice the speed of Bitcoin gains in 2023. While the Bitcoin price is up by 160% year-to-date, the MSTR stock is up by a staggering 316% since the beginning of 2023.
Everyone in the crypto community is awaiting the launch of the first spot Bitcoin ETF in the US. As per the tentative schedule, this shall happen by January 10 i.e. within a fortnight.
When asked about the potential negative impact of an ETF launch on MSTR, Saylor asserted that MicroStrategy stands apart due to its status as an operating company, unlike ETFs that are unleveraged and charge fees.
He underscored MicroStrategy’s ability to generate additional BTC through profit and loss (P&L) or capital markets operations. Using an analogy, Saylor likened MicroStrategy to an airline, highlighting its unique position compared to ETFs, which he compared to shipping lines. In essence, he suggested that MicroStrategy offers higher performance and leverage without associated fees.
The Bitcoin price has recovered to $43,000 at press time after facing a major drop earlier today. Currently, Bitcoin has been oscillating in the tight range of $42,000-$44,000. Breaking the upper resistance, the BTC price could make a move into the zone of $47,000-$50,000.
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