MicroStrategy Grows Bitcoin Holdings, Nearing U.S. Government Reserves

‍

MicroStrategy recently expanded its Bitcoin reserves with the acquisition of an additional 14,620 bitcoins, according to a recent filing. The company's latest investment amounted to a substantial $615 million, bringing its total Bitcoin expenditure to nearly $1.2 billion since November.

‍

Strategic Bitcoin Accumulation

MicroStrategy Chairman and former CEO, Michael Saylor, announced on X that the company secured this latest batch of Bitcoin at an average price of $42,110 per coin. With this acquisition, the firm now holds a remarkable 189,150 bitcoins, obtained at an average cost of $31,168 per Bitcoin. 

This cumulative investment translates to a staggering $5.9 billion. The recent purchase, disclosed in a Form 8-K filing, occurred between November 30 and December 26, contributing to MicroStrategy's impressive crypto portfolio.

With its latest Bitcoin acquisition, MicroStrategy has brought itself within reach of the U.S. government's holdings, now only 20,000 bitcoins away from matching the government's 210,429 Bitcoin stash.

Furthermore, the company is on the verge of controlling 1% of the total Bitcoin supply, a significant milestone in the volatile world of cryptocurrency.

MicroStrategy's foray into Bitcoin began in 2020 and has continued unabated, even after the departure of founder Michael Saylor from the CEO position. Notably, institutional investors have seized the opportunity to gain exposure to Bitcoin by acquiring MicroStrategy shares (MSTR).

‍

Recent Market Dynamics and ETF Considerations

Recent market movements have been influenced by various filings, including those from heavyweight institutions such as BlackRock. The resurgence of interest in cryptocurrency follows a period of market downturns triggered by the collapse of prominent firms like FTX.

In parallel, MicroStrategy's decision to sell 1 million shares, generating $610 million, aligns with its earlier plan to raise $750 million. This strategic move indicates the company's flexibility in managing its financial portfolio.

However, the broader cryptocurrency market has experienced positive momentum, with Bitcoin's price climbing from $37,400 to its current valuation of $42,046 over the past month.