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MicroStrategy Acquires 14,620 BTC Ahead Of Historic ETF Decision

MicroStrategy Acquires 14,620 BTC Ahead Of Historic ETF Decision

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The Michael Saylor-led business intelligence firm MicroStrategy has doubled down on Bitcoin, acquiring a further 14,620 BTC for $615.7 million in cash at a price of $42,110. 

The latest purchase takes the company’s total Bitcoin holdings to a staggering 189,150 BTC. 

MicroStrategy Acquires More BTC 

The acquisition of BTC by MicroStrategy comes against the backdrop of growing anticipation surrounding a potential approval of a spot Bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission. The firm announced its purchase in its 8-K filing with the United States Securities and Exchange Commission. The latest purchase cost MicroStrategy around $42,110 per BTC. This figure includes fees and other expenses, according to the filing. 

“On December 27th, 2023, MicroStrategy Incorporated (“MicroStrategy”) announced that, during the period between November 30th, 2023 and December 26th, 2023, MicroStrategy, together with its subsidiaries, acquired approximately 14,620 bitcoins for approximately $615.7 million in cash, at an average price of approximately $42,110 per bitcoin, inclusive of fees and expenses.”

The latest purchase brings MicroStrategy’s Bitcoin holdings to a staggering 189,150 BTC, valued at $5.9 billion, at an average purchase price of roughly $31,168 per BTC. MicroStrategy founder and CEO Michael Saylor has been a vocal supporter of Bitcoin for years, and that conviction has been reflected in MicroStrategy’s investments, with the company picking up BTC at regular intervals. Despite Bitcoin’s recent price volatility, Saylor’s conviction in the asset and its potential is unwavering. In a statement accompanying the latest purchase, Saylor noted, 

“We believe that Bitcoin is the world’s most valuable asset class and that it will continue to appreciate significantly over time.”

Previous Purchases 

MicroStrategy’s latest Bitcoin purchase comes after the firm had purchased a staggering 16,130 BTC as recently as November. The firm had made this purchase at a price of $36,785 per BTC. Prior to the November purchase, the company bought 6067 BTC in September and October 2023 and 12,333 BTC in June 2023. At the time of the November purchase, Saylor had stated, 

“MicroStrategy has acquired an additional 16,130 BTC for ~$593.3 million at an average price of $36,785 per #bitcoin. As of 11/29/23, @MicroStrategy now hodls 174,530 $BTC acquired for ~$5.28 billion at an average price of $30,252 per bitcoin.”

Since it announced that it would use BTC as its treasury reserve asset back in August 2020, MicroStrategy has constantly purchased significant quantities of Bitcoin. 

Anticipation Around Spot Bitcoin ETF Grows 

MicroStrategy’s latest purchase comes weeks before January 10th, the day the entire crypto community is waiting for. January 10th is the day when the markets anticipate the Securities and Exchange Commission could approve a spot Bitcoin ETF or several spot Bitcoin ETFs. Saylor has stated that he believes a spot Bitcoin ETF could be the “biggest development on Wall Street in 30 years.” Saylor believes such a product could open the doors to mainstream retail and institutional investors who were previously unable to access Bitcoin. 

However, not everyone shares the same optimism as Saylor about a spot Bitcoin ETF in the US markets. According to Bitcoin analyst Josef Tětek, a spot Bitcoin ETF could take people further from self-custody and potentially create millions of unbacked Bitcoins. BitMEX co-founder Arthur Hayes stated that spot Bitcoin ETFs could completely destroy Bitcoin if they are too successful.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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