MicroStrategy Expands Bitcoin Holdings to 471,100 BTC Worth $46 Billion

MicroStrategy, a prominent player in the corporate Bitcoin space, has once again expanded its Bitcoin holdings by acquiring an additional 10,100 BTC for $1.1 billion. This strategic move solidifies MicroStrategy's position as the largest corporate holder of Bitcoin. The recent purchase, made at an average price of $105,596 per Bitcoin, took place just before a market correction that caused Bitcoin's price to drop by 6% below $100,000.

Acquisition Details and Financial Impact

MicroStrategy's latest acquisition of 10,100 BTC for approximately $1.1 billion at an average price of $105,596 per Bitcoin has resulted in a BTC Yield of 2.90% Year-to-Date (YTD) in 2025. As of January 26, 2025, MicroStrategy now holds a total of 471,107 BTC acquired for around $30.4 billion at an average cost of $64,511 per Bitcoin. This significant investment underscores the company's confidence in Bitcoin's long-term growth potential.

Funding Strategy through Stock Sales

To finance these recent Bitcoin acquisitions, MicroStrategy opted to utilize stock sales. By leveraging its shareholder-approved increase in authorized Class A common shares from 330 million to a groundbreaking 10.3 billion shares, the company successfully raised $1.1 billion. This strategic funding approach highlights MicroStrategy's unwavering commitment to its Bitcoin-focused treasury strategy and demonstrates its proactive stance in the evolving digital asset landscape.

Michael Saylor's Vision and Bitcoin Advocacy

Michael Saylor, the co-founder of MicroStrategy and a vocal advocate for Bitcoin, teased the latest purchase on social media, emphasizing the company's steadfast belief in Bitcoin as a valuable treasury asset. This strategic move aligns with the broader trend of Bitcoin adoption in the United States, where recent developments, such as calls for a national 'digital asset stockpile,' have increased interest in Bitcoin as a strategic reserve asset.

Consistent Accumulation and Strategic Positioning

MicroStrategy's recent purchase marks the 12th consecutive week of Bitcoin acquisitions, showcasing the company's relentless accumulation strategy. Despite market fluctuations and skepticism from traditional investors, MicroStrategy remains resolute in its commitment to Bitcoin, positioning the cryptocurrency as the focal point of its corporate treasury. This bold approach not only reflects MicroStrategy's confidence in Bitcoin's enduring value but also signals a potential shift in corporate treasury management, with more companies considering Bitcoin as a hedge against inflation and economic uncertainty.

Frequently Asked Questions

How much should your IRA include precious metals

It is important to remember that precious metals can be a good investment for anyone. It doesn't matter how rich you are to invest in precious metals. There are many ways that you can make money with gold and silver investments, even if you don't have much money.

You might think about buying physical coins such a bullion bar or round. You could also buy shares in companies that produce precious metals. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.

You will still reap the benefits of owning precious metals, regardless of which option you choose. Although they aren’t stocks, they offer the possibility for long-term gains.

Their prices are more volatile than traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.

What proportion of your portfolio should you have in precious metals

To answer this question, we must first understand what precious metals are. Precious elements are those elements which have a high price relative to other commodities. This makes them valuable in investment and trading. Gold is by far the most common precious metal traded today.

There are however many other types, including silver, and platinum. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It is also unaffected significantly by inflation and Deflation.

All precious metals prices tend to rise with the overall market. However, they may not always move in synchrony with each other. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower interest rates, making bonds less attractive investments.

When the economy is healthy, however, the opposite effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. Because they are rare, they become more pricey and lose value.

Diversifying across precious metals is a great way to maximize your investment returns. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.

Can the government take your gold

The government cannot take your gold because you own it. You earned it through hard work. It belongs to your. This rule could be broken by exceptions. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even if taxes are not paid, gold is still your property.

Statistics

• 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)
• If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
• You can only purchase gold bars at least 99.5% purity. (forbes.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)
• Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)

External Links

wsj.com

• Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
  
• How do you keep your IRA Gold at Home? It's not legal – WSJ
  

law.cornell.edu

• 7 U.S. Code SS7 – Designation of boards for trade as contract markets
  
• 26 U.S. Code SS 408 – Individual retirement accounts
  

forbes.com

• Gold IRA: Add some sparkle to your retirement nest egg
  
• Understanding China's Evergrande Crisis – Forbes Advisor
  

irs.gov

• Retirement Topics – IRA Contribution Limits
  

How To

Investing in gold vs. investing in stocks

These days, it might seem quite risky to invest your money in gold. This is because most people believe that it is no longer economically profitable to invest gold. This belief comes from the fact most people see gold prices falling due to the global economy. They believe they would lose their money if they invested gold. In reality, however, there are still significant benefits that you can get when investing in gold. We'll be looking at some of these benefits below.

Gold is the oldest known form of currency. It has been in use for thousands of year. People around the world have used it as a store of value. It is still used as a payment method by South Africa and other countries.

The first point to consider when deciding whether or not you should invest in gold is what price you want to pay per gram. When looking into buying gold bullion, you must decide how much you are willing to spend per gram. You could contact a local jeweler to find out what their current market rate is.

It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. So, although gold prices have declined in recent years, the cost of producing it has not changed.

Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. This is not a wise decision if you're looking to invest in long-term assets. Profitable gold can be sold at a lower price than it was when you bought it.

We hope you have gained a better understanding about gold as an investment tool. We strongly recommend that you research all available options before making any decisions. Only after doing so can you make an informed decision.

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By: Mark Mason
Title: MicroStrategy Expands Bitcoin Holdings to 471,100 BTC Worth $46 Billion
Sourced From: bitcoinmagazine.com/business/microstrategy-expands-bitcoin-holdings-to-471100-btc-worth-46-billion
Published Date: Mon, 27 Jan 2025 22:10:39 GMT