MICROSTRATEGY ENDS 2023 WITH $615.7M BITCOIN BUY

As 2023 draws to a close, MicroStrategy has made a significant addition to its Bitcoin holdings. The business intelligence firm, led by Michael Saylor, has purchased an additional 14,620 Bitcoins, totaling approximately $615.7 million. This acquisition further cements MicroStrategy’s position as the largest corporate holder of Bitcoin.

MicroStrategy’s Ongoing Bitcoin Strategy

The recent purchase was made at an average price of $42,110 per Bitcoin. As of December 26, 2023, MicroStrategy’s Bitcoin portfolio includes 189,150 BTC, acquired at an aggregate cost of about $5.9 billion, averaging $31,168 per Bitcoin. This move is part of the company’s strategy to use Bitcoin as a long-term treasury reserve asset.

Market Context and Previous Investments

This acquisition comes as Bitcoin’s price stands at $42,934, following a 16% increase over the month. Notably, just a month earlier, MicroStrategy invested $600 million to buy 16,130 BTC at an average price of $36,785 per Bitcoin.

Profit and Recovery

2023 marked a year of recovery for MicroStrategy, which reported over $1 billion in unrealized profits from Bitcoin. This was a significant turnaround from 2022, when the company faced a $1 billion loss. The latest purchase boosts the company’s profit from its Bitcoin investment to approximately $2.21 billion.

Michael Saylor’s Bitcoin Advocacy

Despite market volatility and the downturn experienced in 2022, CEO Michael Saylor has remained a steadfast supporter of Bitcoin. He has predicted a substantial increase in Bitcoin’s value by 2024, citing factors like the upcoming Bitcoin halving and the potential approval of a spot Bitcoin ETF.

MicroStrategy’s aggressive investment in Bitcoin showcases its belief in the digital asset’s long-term value and its commitment to integrating Bitcoin into its treasury operations. This strategy reflects a growing trend among corporations to diversify their asset holdings with cryptocurrency investments.

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