Microstrategy Now Holds 190,000 Bitcoins
Nasdaq-listed Microstrategy, a publicly-traded operating company, has further increased its cryptocurrency holdings to 190,000 bitcoins. This marks an acquisition of an additional 31,755 bitcoins since the end of the third quarter. The company's commitment to the continued development of the Bitcoin network has led it to describe itself as "the world's first Bitcoin development company." Microstrategy's unique value proposition sets it apart, even when compared to spot bitcoin exchange-traded funds (ETFs).
Microstrategy's Bitcoin Acquisition
Microstrategy Inc. (Nasdaq: MSTR) recently released its earnings report for Q4 2023, revealing the acquisition of 31,755 more bitcoins since the end of the third quarter. This includes 850 bitcoins acquired in January. Microstrategy's executive chairman, Michael Saylor, announced on social media platform X Tuesday:
"In January, Microstrategy acquired an additional 850 BTC for $37.2 million and now holds 190,000 BTC."
As of December 31, 2023, Microstrategy's digital assets, consisting of approximately 189,150 bitcoins, had a carrying value of $3.626 billion. This reflects cumulative impairment losses of $2.269 billion, as explained by the company.
Record-Breaking Bitcoin Holding Increase
Microstrategy's chief financial officer, Andrew Kang, commented on the recent acquisition:
"We acquired 31,755 additional bitcoins since the end of the third quarter, marking the largest quarterly bitcoin holding increase in the last 3 years and the 13th consecutive quarter of adding more bitcoin to our balance sheet. We benefited from the significant increase in bitcoin prices in Q4 … We now hold 190,000 bitcoins at an aggregate purchase price of $31,224."
The World's First Bitcoin Development Company
In its Q4 earnings presentation, Microstrategy proudly declares itself to be the world's first Bitcoin development company. The company emphasizes its unique value proposition compared to spot bitcoin exchange-traded funds (ETFs). Microstrategy's commitment to the continued development of the bitcoin network is driven by its activities in the financial markets, advocacy, and technology innovation. As an operating business, Microstrategy is able to accumulate bitcoin using cashflows, as well as proceeds from equity and debt financings, making it the company's primary treasury reserve asset.
Additionally, Microstrategy's software development capabilities are utilized to develop bitcoin applications. The company's vision of "Intelligence Everywhere" is supported by its industry-leading AI-powered enterprise analytics software. Microstrategy believes that its operating structure, bitcoin strategy, and focus on technology innovation present a unique opportunity for value creation.
What are your thoughts on Microstrategy's accumulation of 190,000 bitcoins and its claim as the world's first Bitcoin development company? Let us know in the comments section below.
Frequently Asked Questions
How much should precious metals be included in your portfolio?
To answer this question we need to first define precious metals. Precious metals have elements with an extremely high worth relative to other commodity. This makes them highly valuable for both investment and trading. Gold is currently the most widely traded precious metal.
However, many other types of precious metals exist, including silver and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also not affected by inflation and depression.
The general trend is for precious metals to increase in price with the overall market. However, they may not always move in synchrony with each other. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
When the economy is healthy, however, the opposite effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. They become less expensive and have a lower value because they are limited.
You must therefore diversify your investments in precious metals to reap the maximum profits. Furthermore, because the price of precious Metals fluctuates, it is best not to focus on just one type of precious Metals.
Who is entitled to the gold in a IRA that holds gold?
The IRS considers anyone who owns gold to be “a form money” and therefore subject to taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
If you plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
To find out what options you have, consult an accountant or financial planner.
How does a gold IRA account work?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
Physical gold bullion coin can be purchased at any time. You don't have to wait until retirement to start investing in gold.
An IRA allows you to keep your gold forever. Your gold assets will not be subjected tax upon your death.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
First, an individual retirement account will be set up to allow you to open a golden IRA. After you do this, you will be granted an IRA custodian. This company acts like a middleman between the IRS and you.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reports.
After you have established your gold IRA you will be able purchase gold bullion coin. Minimum deposit is $1,000 The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
Taxes will be charged on gold you have withdrawn from an IRA. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.
You may not be required to pay taxes if you take out only a small amount. However, there are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
It's best not to take out more 50% of your total IRA investments each year. Otherwise, you'll face steep financial consequences.
Is it a good retirement strategy to buy gold?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
The most popular form of investing in gold is through physical bullion bars. There are many ways to invest your gold. It is best to research all options and make informed decisions based on your goals.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. Owning gold stocks should work well if you need cash flow from your investment.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Lawful – WSJ
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
The best place online to buy silver and gold
Understanding how gold works is essential before you buy it. Gold is a precious metallic similar to Platinum. It's very rare, and it is often used as money for its durability and resistance. It's hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They aren’t exchangeable in any currency exchange. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. Each dollar spent earns the buyer 1 gram gold.
The next thing you should know when looking to buy gold is where to do it from. If you want to purchase gold directly from a dealer, then a few options are available. First off, you can go through your local coin shop. You could also look into eBay or other reputable websites. You may also be interested in buying gold through private sellers online.
Private sellers are individuals who offer gold for sale, either at wholesale prices or retail prices. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. This means that you will get less back from a private seller than if you sell it through a coin shop or on eBay. However, this option is often a great choice when investing in gold since it gives you more control over the item's price.
You can also invest in gold physical. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
When buying gold on your own, you can visit a bank or a pawnshop. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. The pawnshop is a small business that allows customers to borrow money to buy items. Banks tend to charge higher interest rates, while pawnshops are typically lower.
A third way to buy gold? Simply ask someone else! Selling gold can be as easy as selling. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
By: Kevin Helms
Title: Microstrategy Raises Bitcoin Holdings to 190K BTC — Calls Itself ‘World’s First Bitcoin Development Company’
Sourced From: news.bitcoin.com/microstrategy-raises-bitcoin-holdings-to-190k-btc-calls-itself-worlds-first-bitcoin-development-company/
Published Date: Thu, 08 Feb 2024 01:30:26 +0000