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Microstrategy's Latest Acquisition
MicroStrategy, under the guidance of its founder and executive chairman Michael Saylor, has further expanded its Bitcoin holdings with the recent acquisition of an additional 12,333 bitcoins. The latest purchase, made at an average price of $28,136 per token, added approximately $347 million worth of Bitcoin to the company's treasury.
The new addition brings MicroStrategy's total Bitcoin holdings to a staggering 152,333, acquired for roughly $4.52 billion at an average price of $29,668 per token. At current market prices, the company's Bitcoin treasury is valued at approximately $4.6 billion.
Bitcoin's Rising Dominance and MicroStrategy's Conviction
The latest investment comes on the heels of Saylor's prediction that regulatory crackdowns on cryptocurrencies in the U.S. will benefit Bitcoin, potentially doubling its market share. He noted that Bitcoin's share of the overall crypto industry market cap has increased from 40% to 48% this year and expects this dominance to grow to 80% as regulations tighten on other tokens.
Saylor has also expressed his belief in Bitcoin's potential for significant growth, stating,
"Now I think that the public is beginning to realize that Bitcoin is the next Bitcoin. The next logical step is for Bitcoin to 10x from here and then 10x again"
Impact on MicroStrategy's Financial Performance
The aggressive Bitcoin strategy appears to be paying dividends for the enterprise software company. In 2023, Bitcoin, the world's largest cryptocurrency, rallied about 82%, contributing to MicroStrategy's first profitable quarter in more than two years.
MicroStrategy's conviction in its Bitcoin strategy remains strong, as indicated by CFO Andrew Kang. "The conviction in our Bitcoin strategy remains strong as the digital asset environment continues to mature," Kang said in a statement earlier this year, following the company's acquisition of 7,500 tokens that quarter.
Saylor's Market Predictions
Saylor has been an active commentator on the market and has made several predictions recently, including his belief that the next U.S. president will be pro-Bitcoin. He has also touted the cryptocurrency as a more attractive asset than traditional safe-haven assets like gold, even going so far as to dub the cryptocurrency as "immortal".