MicroStrategy is purchasing Bitcoin en masse and now controls almost 1% of the total supply of the digital currency

MicroStrategy, one of the most important companies in the world betting on Bitcoin, announced this Wednesday (27) the massive purchase of 14,620 bitcoins. The acquisition, valued at $615.7 million, brings the company’s total bitcoin holdings to 189,150, valued at a staggering $8.1 billion.

Led by Michael Saylor, MicroStrategy made the new purchase at an average price of $42,110 per coin, continuing its Bitcoin investment strategy that began in 2020.

Since then, MicroStrategy has invested approximately $5.9 billion in Bitcoin and earned $2 billion in profits from the cryptocurrency. The move also saw a significant increase in the value of the company’s shares, which rose more than 300% in 2023 alone.

Bitcoin Strategy

The decision to invest heavily in Bitcoin comes at a time when the traditional financial market is showing growing interest in cryptocurrencies. This is evident from the number of requests for approval of Bitcoin ETFs (Stock Exchange Investment Funds), which allow US investors to gain direct exposure to the cryptocurrency.

Among the 13 candidates to offer the Bitcoin ETF are giants such as BlackRock, Hashdex and ARK 21Shares, all of which are awaiting a decision from the US Securities and Exchange Commission (SEC).

Industry experts and speculators expect this decision to be made in early January 2024, coinciding with Bitcoin’s next halving.

MicroStrategy’s latest purchase surpasses its previous acquisition in November, which was $593 million, and is the company’s third-largest Bitcoin purchase to date.

The largest purchase took place in December 2020, when they acquired almost 30,000 Bitcoins. With these acquisitions, MicroStrategy now owns approximately 0.9% of the entire Bitcoin supply, bringing it closer to the US government’s reserves, which hold approximately 210,000 Bitcoins.

MicroStrategy now controls almost 1% of the total bitcoin supply

This move puts MicroStrategy on track to reach a 1% share of the total Bitcoin supply, a major milestone in the world of cryptocurrencies.

The company continues to demonstrate confidence in the long-term value of Bitcoin by maintaining a consistent and aggressive investment strategy despite market fluctuations.

If Bitcoin ETF gains approval in the US, MicroStrategy, like Bitcoin itself, is expected to see a significant increase in its value, potentially sparking an unprecedented rally in the digital asset market.

Source: Live Coins

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