TL;DR
- MicroStrategy acquires 21,550 Bitcoin (BTC) for $2.1 billion, bringing its total holdings to 423,650 BTC.
- The average acquisition cost stands at $60,324 per coin, representing 2% of Bitcoin’s maximum supply.
- Michael Saylor advocates for Bitcoin as a store of value, but the company faces criticism for its heavy reliance on the asset’s price.
MicroStrategy, the renowned business intelligence firm, has doubled down on its Bitcoin strategy with the acquisition of 21,550 BTC for approximately $2.1 billion. This purchase will strengthen its position as the largest corporate holder of the cryptocurrency, raising its total portfolio to 423,650 BTC. The company continues to make consecutive acquisitions, marking this as its fifth purchase in a matter of weeks—a strategy that has defined its approach in recent years.
The average acquisition cost for MicroStrategy now stands at $60,324 per coin, reflecting a consistent investment strategy. With an estimated current value of $42 billion, the company’s Bitcoin holdings represent approximately 2% of the cryptocurrency’s maximum supply.
https://twitter.com/saylor/status/1866106687699964016
This continuous accumulation aligns with the firm’s long-term financial objectives. Having already raised $11.09 billion through equity offerings, MicroStrategy is closing in on its projected 2026 target of $12 billion.
MicroStrategy and Bitcoin: A Risky Dependence?
The company’s CEO, Michael Saylor, has been a staunch advocate for Bitcoin as a store of value, even publicly suggesting that the United States government should consider replacing its gold reserves with BTC. While his stance has sparked interesting debates, it also underscores Saylor’s confidence in the cryptocurrency’s potential as a pivotal asset in the global financial future.
However, MicroStrategy’s strategy has faced significant criticism. Some analysts have raised concerns about the risks tied to such a pronounced reliance on Bitcoin’s continuous price appreciation. The company’s shares fell by 2.18% in premarket trading, reflecting market unease over its elevated exposure.
Despite these concerns, MicroStrategy remains one of the most influential companies in the crypto industry and has established itself as a pioneer in institutional Bitcoin adoption
