May 26, 2024
MicroStrategy's Latest $615.7 Million Bitcoin Purchase
Bitcoin News

MicroStrategy Adds 14,620 BTC Worth $615.7 Million to Growing Crypto Treasury

MicroStrategy persists in accumulating Bitcoin despite growing anticipation of potential approval for a spot BTC exchange-traded fund (ETF) in the United States. Between Nov. 20, 2023, and Dec. 26, 2023, MicroStrategy and its subsidiaries made a fresh acquisition of 14,620 BTC for $615.7 million in cash, as officially announced in their 8-K filing with the U.S. Securities and Exchange Commission. The recent Bitcoin procurement cost MicroStrategy approximately $42,110 per BTC, including fees and additional expenses.

This purchase contributes to MicroStrategy and its subsidiaries’ overall Bitcoin holdings of 189,150 bitcoins, acquired at an aggregate purchase price of roughly $5.9 billion, with an average purchase price per BTC of approximately $31,168.

This latest BTC acquisition by MicroStrategy trails a previous substantial purchase of 16,130 bitcoins in November 2023, obtained at $36,785 per bitcoin. The company procured 6,067 BTC in September and October 2023 and 12,333 BTC in June.

MicroStrategy’s continual Bitcoin acquisitions reinforce its commitment to Bitcoin investment, aligning with the perspective of its co-founder and notable Bitcoin advocate, Michael Saylor. This announcement arrives just ahead of Jan. 10, a date widely anticipated for the SEC’s potential approval of a spot Bitcoin ETF or multiple ETFs.

Michael Saylor regards a spot Bitcoin ETF as possibly the biggest development on Wall Street in 30 years, citing its potential to grant access to BTC for mainstream retail and institutional investors previously unable to enter the market. However, not all share this optimism regarding the implications of a spot Bitcoin ETF in the U.S.

According to Josef Tetek, a Bitcoin analyst at Trezor, a spot Bitcoin ETF might steer individuals away from self-custody and potentially result in “millions of unbacked Bitcoin.” Skeptics like Arthur Hayes, co-founder of BitMEX, warn of the risks associated with spot Bitcoin ETFs, suggesting they could destroy Bitcoin if overly successful.

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