MicroStrategy Acquires $615M Bitcoin; $50K BTC Soon?

Following the latest acquisition, MicroStrategy now holds a remarkable $6 billion worth of Bitcoin on its balance sheet.

Despite a dip in Bitcoin (BTC) to $42,000 following a sell-off, major players are seizing the opportunity. MicroStrategy Chairman Michael Saylor recently revealed that his company has capitalized on the dip by making a new acquisition of $615 million worth of Bitcoins.

MicroStrategy Chairman Announces $615M Bitcoin Purchase

In a recent announcement, MicroStrategy Chairman Michael Saylor disclosed the company’s latest move—acquiring 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 an impressive 189,150 BTC, acquired for around $5.9 billion, with an average cost per Bitcoin in this extensive holding at $31,168. This reaffirms MicroStrategy’s unwavering commitment to Bitcoin as a strategic component of its treasury reserve.

MicroStrategy has acquired an additional 14,620 BTC for ~$615.7 million at an average price of $42,110 per #bitcoin. As of 12/26/23, @MicroStrategy now hodls 189,150 $BTC acquired for ~$5.9 billion at an average price of $31,168 per bitcoin. $MSTR https://t.co/PKfYY59sTW

— Michael Saylor⚡️ (@saylor) December 27, 2023

This substantial purchase marks MicroStrategy’s first major acquisition since last month’s procurement of 155 BTC. Notably, the company holds the distinction of being the largest private entity with the highest number of Bitcoins on its balance sheet.

Moreover, the MicroStrategy stock (NASDAQ: MSTR) has outpaced Bitcoin gains in 2023, witnessing a remarkable 316% surge since the beginning of the year, compared to Bitcoin’s 160% increase.

The anticipation within the crypto community is building for the launch of the first spot Bitcoin ETF in the US, tentatively scheduled for January 10. When questioned about the potential impact of an ETF launch on MSTR, Saylor emphasized MicroStrategy’s unique status as an operating company, distinguishing it from ETFs that are unleveraged and charge fees.

Saylor highlighted MicroStrategy’s ability to generate additional BTC through profit and loss (P&L) or capital markets operations. Using an analogy, he likened MicroStrategy to an airline, asserting its superior performance and leverage without associated fees, in contrast to ETFs, which he compared to shipping lines.

Bitcoin Price Poised for $50,000?

The markets are still consolidating for #Bitcoin.

Probably the most part of this upwards move is in, consolidation is next.

Range resistance to be found at $47-50K.

Support at $36-39K. pic.twitter.com/KuNaJwAUkE

— Michaël van de Poppe (@CryptoMichNL) December 26, 2023

The Bitcoin price has successfully recovered to $43,000 as of press time, following a significant drop earlier in the day. Presently, Bitcoin is exhibiting oscillations within the tight range of $42,000 to $44,000. If the upper resistance is breached, there is potential for a bullish move, propelling the BTC price into the zone of $47,000 to $50,000.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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