[NEWS] MicroStrategy buys additional Bitcoin worth approximately $600 million

MicroStrategy, a Nasdaq-listed business intelligence and software development company, announced on the 30th of last month that it had invested approximately $600 million (approximately 88 billion yen) to purchase additional Bitcoin (BTC).

The amount of Bitcoin purchased by MicroStrategy this time is 16,000 BTC.

Michael Saylor, founder and former CEO of the company, said on X (formerly Twitter) that "MicroStrategy acquired 16,130 BTC for a total of approximately $593.3 million, at an average price of $36,785. As of November 29, 2023, MicroStrategy has acquired 174,530 BTC for approximately $5.28 billion, at an average price of $30,252."

With this purchase, MicroStrategy's Bitcoin holdings have reached 174,530 BTC. At the time of writing, this is equivalent to approximately 1.6 trillion yen. MicroStrategy is currently the largest holder of Bitcoin.

MicroStrategy first purchased Bitcoin in August 2020. At the time, it made a large initial investment of $250 million in Bitcoin. Since then, the cryptocurrency market has continued to be bullish, and Bitcoin rose to an all-time high of $69,000 in November 2021.

Saylor claims that Bitcoin is "a hedge against inflation and the best strategy to maximize returns for shareholders."

In MicroStrategy's third-quarter report last month, he said, "Buying MicroStrategy shares is the safe way for investors to invest in Bitcoin." MicroStrategy (MSTR), listed on the Nasdaq market, closed at $527.68 last week, up about 15% from a month ago.

Saylor has often argued that Bitcoin is a better investment asset than cash or real estate. "It is a valuable and reliable way to store cash, and an attractive investment asset that has the potential to rise in value over the long term more than cash."

MicroStrategy CEO Phuong Le suggested that the company will continue to buy Bitcoin.

Factors behind Bitcoin's rise

Bitcoin's fourth halving is approaching around spring next year, and the price has risen significantly due to expectations that the SEC (U.S. Securities and Exchange Commission) will approve a Bitcoin spot ETF. These circumstances are boosting the momentum of Bitcoin investment strategies such as MicroStrategy.

MicroStrategy also said that it may raise up to $750 million (about 110 billion yen) through the sale of new Class A shares. This suggests that it has plans to invest in Bitcoin further in the future.

Reference:Announcement
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