Bitcoin's fire reignites! MicroStrategy splurges $620 million to snap up goods

Zhitong
2023.12.28 03:38
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MicroStrategy, a Bitcoin company, has purchased $620 million worth of Bitcoin to enhance its stock appeal and as a long-term investment. This move has attracted the attention of investors, as more and more people are optimistic that the U.S.'s top market regulatory agency will soon approve the trading of Bitcoin exchange-traded funds (ETFs). As a result, MicroStrategy's stock price has surged by 8%. They have stated that Bitcoin will ultimately become an excellent store of value and plan to continue purchasing this digital asset.

Zhitong App learned that software company MicroStrategy (MSTR.US) announced on Wednesday that it has purchased approximately $615.7 million worth of Bitcoin, as more and more people are optimistic that the U.S. Securities and Exchange Commission will soon approve the trading of Bitcoin exchange-traded funds (ETFs).

According to a regulatory filing, the company and its subsidiaries purchased approximately 14,620 Bitcoins between November 30th and December 26th, at an average price of around $42,110.

MicroStrategy's stock price surged 8% in afternoon trading. So far this year, its stock price has soared 350%, while Bitcoin has risen nearly 160%.

MicroStrategy's move to purchase Bitcoin as a store of value is beneficial for enhancing its stock attractiveness, as its stock performance often fluctuates in sync with digital assets. TD Cowen analyst, a investment firm, said, "This is not only a short-term trading strategy, but also reflects a belief that Bitcoin will ultimately prove to be an excellent store of value. For investors who want to invest in Bitcoin, the company is also an attractive tool."

After several prominent companies in the industry, such as the cryptocurrency exchange FTX, collapsed, the cryptocurrency market was once severely hit. In recent months, the filing of applications for spot Bitcoin ETFs by traditional financial heavyweights such as BlackRock has once again boosted people's confidence in the cryptocurrency market (spot cryptocurrency ETFs will track the market price of underlying cryptocurrency assets, allowing investors to access tokens without buying the currency).

MicroStrategy has been buying cryptocurrencies since 2020, and the company and its subsidiaries currently hold approximately 189,150 Bitcoins, with a total purchase price of around $5.9 billion.

The company stated that its Bitcoin investment is intended for long-term holding and expects to continue accumulating this world's largest and most well-known cryptocurrency. In its latest quarterly report, MicroStrategy stated, "Due to limited supply, if the adoption of Bitcoin increases, it will have the opportunity to appreciate and may serve as a hedge against inflation in the long term."

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