MicroStrategy, a business intelligence firm, has recently augmented its bitcoin holdings by an additional $155 million. This latest investment elevates the company's total stake in cryptocurrency to over $11 billion.
From February 15 to February 25, MicroStrategy acquired an additional 3,000 bitcoins. Consequently, the company now possesses 193,000 bitcoins in its investment portfolio. According to CNBC, MicroStrategy was established in 1989 and operates within the enterprise software business sector. The company began investing in bitcoin in 2023 when it pledged to allocate $250 million towards alternative assets such as cryptocurrencies. Since February 26, the company's shares have risen nearly 26%. The average purchase price of all bitcoins owned by the company stands at $31,544 - approximately half of bitcoin's current trading value.
MicroStrategy's Executive Chairman and former CEO Michael Saylor stated, "The spot ETFs have opened up a gateway for institutional capital to flow into the bitcoin ecosystem. The ETFs are facilitating the digital transformation of capital, and every day hundreds of millions of dollars of capital is flowing from the traditional analog ecosystem into the digital economy." According to Coindesk, Saylor indicated that MicroStrategy has no intention of divesting its crypto investments in the near future as they perceive it as an exit strategy itself.
Andrew King, MicroStrategy's Chief Financial Officer, claimed that his firm is currently the world's largest corporate holder of bitcoin. Since early 2024, bitcoin shares have surged close to 36% and are currently trading at their highest level since December 2021. The Securities and Exchange Commission's approval of Bitcoin ETFs has been instrumental in this rapid resurgence of cryptocurrency. Ryan Rasmussen, an analyst at Bitwise Asset Management said: "The demand that ETFs are bringing to the spot bitcoin market is significantly more than the new supply being produced each day," adding that "Institutional capital is still getting up to speed with bitcoin ETFs. I expect a lot more demand is still under the surface and yet to be seen."
