MicroStrategy acquired 15,350 BTC from December 9 to December 15 for about $1.5 billion, at a price of approximately $100,386 per Bitcoin, with a Bitcoin return of 46.4% for the quarter to date and a return of 72.4% year-to-date.
As of December 15, 2024, MicroStrategy holds 439,000 BTC, at a price of approximately $61,725 per Bitcoin, with an acquisition cost of about $27.1 billion.
Additionally, the company sold 3.89 million shares of stock under the agreement, worth approximately $1.54 billion. Most likely, this is also used to increase their Bitcoin holdings!! That's right, MicroStrategy has increased its holdings again! MicroStrategy is the number one fan of Bitcoin!
Bitcoin has broken through the new high of $107,000 today! The newly effective cryptocurrency accounting in the US is a major benefit for BTC!!!
The FASB's accounting standards specifically designed for cryptocurrencies officially took effect on the 15th of this month.
According to this latest rule, in the future, companies in the US holding cryptocurrencies will be able to include their held Bitcoin and other digital assets in their company financial reports at market fair value.
Before the change, for these companies, if the price of the cryptocurrencies they held on the balance sheet fell, they could only perform write-downs; only when deciding to sell the cryptocurrencies could they register assets at a profit.
This means that even if you buy Bitcoin at $90,000, even if it rises to $100,000, it can only be calculated at $90,000. However, if it drops to $80,000, a write-down must be recorded. The accounting standards that only allow write-downs in financial reports do not enable the board and investors to fully assess cryptocurrency investments.
However, now with the new accounting standards in place, companies will be able to separately record their held cryptocurrencies on the balance sheet under special project classifications, and if calculated at fair value, these companies can also include the profits from the rise in coin prices in their net income. This allows companies like MicroStrategy that invest in Bitcoin or Ethereum to present their cryptocurrency investment income more accurately in their financial reports.
For beginners, you can understand that it will be more convenient for US listed companies to hold BTC in the future, and they can also reflect the rate of return based on market prices in their financial reports!
Many people are also worried that with Christmas approaching, traders might sell Bitcoin and other cryptocurrencies to cash out in order to reduce trading and raise funds to celebrate the holiday season, which could impact BTC's performance!!
In the past 10 years (2014 - 2023), Bitcoin has closed lower on 6 out of 10 Christmases, with the largest drop occurring in 2018 at 5.58%; while in the 4 instances of closing higher, the largest increase was in 2020 at 4.11%.
