March 27, 2024
MicroStrategy Boosts Bitcoin Holdings Amid ETF Trends
Bitcoin News

MicroStrategy Boosts Bitcoin Holdings Amid ETF Trends

MicroStrategy, led by Michael Saylor, has expanded its Bitcoin holdings with the acquisition of an additional 3,000 Bitcoin, investing $155 million between February 15 and 25. The average purchase price stood at $51,813, contributing to the company’s total of 193,000 Bitcoin holdings. These were obtained at an average price of $31,544, amounting to $6.09 billion. MicroStrategy holds the position of being the largest Bitcoin holder among publicly traded companies.

The announcement of this significant purchase coincided with an unfortunate event for MicroStrategy. The company’s X account fell victim to hacking, with the perpetrator posting malicious links to fake token airdrops in an attempt to steal user funds. The illicit activity resulted in losses exceeding $440,000, as reported by on-chain investigator ZachXBT.

MicroStrategy’s recent Bitcoin procurement aligns with optimistic forecasts from senior Bloomberg analysts. These experts anticipate Bitcoin exchange-traded funds (ETFs) potentially surpassing gold ETFs in assets under management (AUM) within the next two years.

A research report shared on X by Bloomberg analysts Eric Balchunas and Andre Yapp on February 26 emphasized that the successful launch of Bitcoin ETFs would introduce heightened competition for the precious metal. Since their inception on January 11, the ten Bitcoin ETFs in the United States have collectively acquired 5,500 Bitcoin, accumulating significant traction with an influx of over $5 billion in net assets.

“The Bitcoin ETFs, though barely six weeks old, have taken in over $8 billion more than gold peers, already have 40% as much in assets and could pass them in size in less than two years.”

In comparison, gold ETFs garnered $3.6 billion during the same period. The potential struggle for gold ETFs to retain their $90 billion in assets is attributed to gold’s recent price performance.

Despite the market dynamics, Michael Saylor, MicroStrategy’s CEO, reiterated his commitment to Bitcoin. On February 20, he expressed the intention to continue buying Bitcoin indefinitely, emphasizing Bitcoin’s technical superiority over gold, real estate, and the S&P 500. Saylor emphasized, “Bitcoin is technically superior to those asset classes. And that being the case, there’s just no reason to sell the winner to buy the losers.”

In the past 24 hours, Bitcoin experienced a marginal decrease of 0.67%, trading at $51,314, according to CoinMarketCap. As MicroStrategy fortifies its Bitcoin position, the company remains a notable player in the evolving landscape of digital assets.

Image by 3D Animation Production Company from Pixabay

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