- MicroStrategy has acquired approximately $615.7 million worth of bitcoin in cash, purchasing about 14,620 bitcoins at an average price of around $42,110 between Nov. 30 and Dec. 26. This move comes amid growing anticipation of the U.S. markets regulator approving a spot bitcoin exchange-traded fund (ETF). The Virginia-based software firm's stock surged 8% in response, contributing to its remarkable 350% surge this year, complementing bitcoin's nearly 160% gain.
- MicroStrategy's decision to secure its reserve assets with bitcoin has boosted its stock appeal, aligning with the cryptocurrency's performance. Analysts at TD Cowen emphasized that this move signifies a belief in bitcoin's long-term value as a superior store of value, making MicroStrategy an attractive option for investors seeking bitcoin exposure. The broader crypto market has experienced a revival with recent filings, including those from financial giants like BlackRock, hinting at renewed interest after setbacks like FTX's collapse.
Why it matters
MicroStrategy, which initiated its bitcoin acquisitions in 2020, now holds approximately 189,150 bitcoins, purchased for about $5.9 billion. The company views bitcoin as a long-term holding and plans to continue accumulating the cryptocurrency, citing its limited supply and potential to appreciate in value with increased adoption, serving as a hedge against inflation in the long run.
