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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Dec 23, 2024 13:09 UTC
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MicroStrategy Boosts Bitcoin Reserves with $561 Million Purchase
MicroStrategy recently purchased 5,262 BTC, increasing its total holdings to over 444,000 BTC.
Institutional ownership of the cryptocurrency is increasing substantially.
While MicroStrategy's purchases may provide some price support, Bitcoin's price remains subject to significant market fluctuations.
MicroStrategy, the largest corporate holder of Bitcoin, has once again increased its reserves. The company recently acquired 5,262 BTC for $561 million, paying an average of $106,662 per Bitcoin. This move highlights MicroStrategy’s continued confidence in Bitcoin as a long-term investment.
With this latest purchase, MicroStrategy’s total Bitcoin holdings have reached 444,262 BTC. These were acquired for approximately $27.7 billion at an average price of $62,257 per Bitcoin. The company has remained committed to expanding its Bitcoin treasury, even during periods of market volatility.
In December 2020, at the peak of a bull market, MicroStrategy made its largest single purchase of 29,646 BTC when Bitcoin was trading at around $21,000.
A Buying Spree in November
November 2024 was particularly notable for MicroStrategy’s aggressive acquisitions:
- November 10: Bought 27,200 BTC at $74,000 each.
- November 17: Added 51,780 BTC to its holdings.
- November 24: Completed its largest-ever purchase of 55,500 BTC at $97,000 each.
Fast forward to December 23, 2024, the company made yet another major purchase, adding 5262 BTC to its holdings at an average price of $62,257 per coin. These actions show MicroStrategy’s steady confidence in Bitcoin as a valuable asset for the future.
Institutional players, including MicroStrategy, crypto ETFs, and governments, are now projected to control 31% of all known Bitcoins. This marks a significant increase from 14% just a year ago, reflecting the growing institutional interest and trust in Bitcoin as a valuable asset.
Institutional adoption is driving Bitcoin’s growth—what’s next for its price? Read Bitcoin price prediction for expert insights!
Inspiring Corporate Crypto Adoption
MicroStrategy’s Bitcoin strategy has influenced other companies to follow suit. Metaplanet, another major entity, is now making significant efforts to build its Bitcoin reserves. This trend underscores the growing recognition of Bitcoin among institutions as a hedge against traditional financial risks.
On a lighter note, MicroStrategy’s co-founder Michael Saylor recently suggested that Amazon’s Jeff Bezos invest $100 million in Bitcoin instead of spending heavily on his upcoming wedding. Bezos is set to marry Lauren Sanchez on December 28 in Aspen, Colorado, with the event reportedly costing $600 million.
Meanwhile, Amazon shareholders have proposed that the company allocate 5% of its assets to Bitcoin as part of a diversification strategy.
Bitcoin Price Reacts
Following MicroStrategy’s latest purchase, Bitcoin’s price saw a slight increase to around $96,000, despite an 8% drop over the past week. Analysts believe that continued corporate adoption, such as MicroStrategy’s efforts, could play a crucial role in Bitcoin’s future growth.
Michael Saylor has expressed a highly optimistic vision for the cryptocurrency market. He predicts that the market’s valuation could grow from $2 trillion today to $280 trillion by 2045. He also suggests that Bitcoin’s value could eventually reach $13 million per coin.
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FAQs
MicroStrategy provides business intelligence software and services, specializing in data analytics and cloud-based solution
Michael Saylor is the founder and executive chairman of MicroStrategy, a leading business intelligence company.
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