Nasdaq-listed Microstrategy has recently increased its bitcoin holdings with the purchase of an additional 14,620 bitcoins, amounting to approximately $615.7 million. This latest acquisition brings the company's total cryptocurrency holdings to an impressive 189,150 bitcoins. Microstrategy has acquired these bitcoins at an average price of $31,168 per coin, resulting in a total investment of around $5.9 billion.
Microstrategy Now Holds 189,150 Bitcoin
Software intelligence firm Microstrategy, listed on the Nasdaq under the ticker symbol MSTR, made the announcement regarding its latest bitcoin acquisition on social media platform X. In a statement, Microstrategy's executive chairman, Michael Saylor, revealed:
"Microstrategy has acquired an additional 14,620 BTC for approximately $615.7 million at an average price of $42,110 per bitcoin. As of December 26, 2023, Microstrategy now holds 189,150 BTC acquired for approximately $5.9 billion at an average price of $31,168 per bitcoin."
According to the company's filing with the U.S. Securities and Exchange Commission (SEC), these additional bitcoins were purchased between November 30 and December 26. Microstrategy's bitcoin strategy has proven to be successful for the company, with Saylor highlighting the significant increase in BTC price since August 10, 2020. During this period, the price of BTC has surged by 253%, outperforming traditional assets such as the S&P 500 and Nasdaq, which saw modest increases of 40% and 35% respectively.
Saylor firmly believes in the long-term value of bitcoin and its potential to appreciate in value. He sees BTC as a reliable store of value and an attractive investment asset, surpassing the potential of holding cash. Furthermore, Saylor emphasized that many are beginning to realize they are underallocated in bitcoin, as it represents the digital transformation of capital.
Spot bitcoin exchange-traded funds (ETFs) have also caught Saylor's attention. He believes that they could be the most significant development on Wall Street in the last three decades. Currently, the SEC is evaluating 13 spot bitcoin ETF applications, and market expectations suggest that multiple approvals will be granted by January 10.
Microstrategy's continued accumulation of bitcoin demonstrates the company's confidence in its long-term value and potential. With a substantial holding of 189,150 BTC, Microstrategy remains one of the prominent institutional investors in the cryptocurrency market.
What are your thoughts on Microstrategy's recent bitcoin acquisition and its current holdings of 189,150 BTC? Let us know in the comments section below.
Frequently Asked Questions
Is gold a good investment IRA option?
Any person looking to save money is well-served by gold. You can also diversify your portfolio by investing in gold. But gold is not all that it seems.
It has been used throughout history as currency and it is still a very popular method of payment. It is sometimes called the “oldest currency in the world”.
But gold, unlike paper currency, which is created by governments, is mined out from the ground. It's hard to find and very rare, making it extremely valuable.
Gold prices fluctuate based on demand and supply. The economy that is strong tends to be more affluent, which means there are less gold miners. This results in gold prices rising.
On the flipside, people may save cash rather than spend it when the economy slows. This increases the production of gold, which in turn drives down its value.
This is why gold investment makes sense for both individuals and businesses. If you have gold to invest, you will reap the rewards when the economy expands.
Also, your investments will earn you interest which can help increase your wealth. If gold's value falls, you don't have to lose any of your investments.
Is buying gold a good retirement plan?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
Physical bullion is the most popular method of investing in gold. But there are many other options for investing in gold. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you need cash flow to finance your investment, then gold stocks could be a good option.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs usually include stocks of precious metals refiners or gold miners.
How much gold do you need in your portfolio?
The amount of capital required will affect the amount you make. If you want to start small, then $5k-$10k would be great. Then as you grow, you could move into an office space and rent out desks, etc. This way, you don't have to worry about paying rent all at once. It's only one monthly payment.
It's also important to determine what type business you'll run. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. You might get paid only once every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k to $2k of gold, and then growing from there.
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was universally accepted and loved for its beauty, durability, purity and divisibility. Due to its value, it was also internationally traded. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). This caused a drop in foreign currency demand which resulted in an increase of their prices. The United States began minting large quantities gold coins at this time, which led to a drop in the price. Due to the excessive amount of money flowing into the United States, they had to find a way for them to repay some of their debt. They decided to return some of the gold they had left to Europe.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. The gold price has gone up significantly in the years since. Today, although the price fluctuates, gold remains one of the safest investments you can make.
By: Kevin Helms
Title: Microstrategy Acquires More Bitcoin, Raising Total Holdings to 189,150 BTC
Sourced From: news.bitcoin.com/microstrategy-acquires-more-bitcoin-raising-total-holdings-to-189150-btc/
Published Date: Wed, 27 Dec 2023 16:30:13 +0000