MicroStrategy owns 402,100 BTC, nearly 2% of Bitcoin's total supply.
Latest purchase of 15,400 BTC raises MicroStrategy’s average cost to $58,263.
Marathon Digital adopts MicroStrategy’s debt-for-Bitcoin strategy with $700M offering.
MicroStrategy, the business intelligence company of Michael Saylor, has increased its Bitcoin holdings with a significant purchase. The total ownership gain was 402,100 BTC, buying 15,400 BTC for $1.5 billion. This has given off about 2 % of the total Bitcoin that will ever exist, thus proving the seriousness of MicroStrategy with the cryptocurrency.
It is the fourth consecutive week of purchases for the company. Earlier, in late November, MicroStrategy made record acquisitions of $5.4B on November 25, $4.6B on November 18, and $2.03B on November 11. This highlights the company's aggressive attitude towards Bitcoin.
MicroStrategy's $58,263 Bitcoin acquisition demonstrates its long-term holding despite Bitcoin's volatility. Additionally, the company's stocks have seen a 0.27% increase in pre-market value.
Adoption of Bitcoin Investment
MicroStrategy's Bitcoin purchase has sparked interest among other large organizations. Marathon Digital firm has recently unveiled a $700 million private offering of convertible notes to finance further Bitcoin purchases. This indicates the increased interest by institutional investors in Bitcoin as a solid form of value storage and a strategic asset.
Co-founder of MicroStrategy Michael Saylor, has spoken in favour of holding Bitcoin. He has consistently pushed for its adoption, noting its limited supply and inflation-resistant properties as must-have selling points. Saylor reaffirmed his belief that Bitcoin purchase is a good bet, saying, “The only thing better than Bitcoin is more Bitcoin.”
https://twitter.com/saylor/status/1863569873713955156
Saylor's effort to support Bitcoin goes beyond his company. He recently wrote a full proposal to Microsoft's Board of Directors, in which he appealed to the company to invest in Bitcoin. This step aligns with his overall strategy to make Bitcoin one of the staple assets among large-scale businesses and investors.
Bitcoin’s Market Trends and Institutional Impact
Bitcoin’s fluctuations are still being watched closely. It has reached just $95 556 after decreasing by 1.7% in the last 24 hours. Nevertheless, suppressed in the short term by such price volatility, the cryptocurrency remains the true asset underpinning MicroStrategy’s and Marathon Digital’s operational strategies.
MicroStrategy’s decision to use debt financing to buy Bitcoin has attracted investors’ interest. The company’s debt for Bitcoin model is a great example of how it can use newer financial products while still relying on conventional ones. Marathon Digital’s similar uptake of the same model shows the scalability of this strategy for organizations looking to use Bitcoin’s long-term potential.
This is not the first time Saylor has advocated for Bitcoin. His ability to garner interest from such entities and his efforts to promote wider corporate interest and uptake could signify a change in corporations' attitudes towards and approach to Bitcoin as part of their corporate finance. This increasing institutional demand implies that Bitcoin has a bright future in conventional finance.
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