Software developer MicroStrategy has boosted its bitcoin (BTC) holdings as the U.S. Securities and Exchange Commission’s (SEC) deadline to approve a spot BTC exchange-traded fund (ETF) nears.
$8 Billion Bitcoin Fortune
MicroStrategy has signalled that it is committed to increasing its Bitcoin holdings.
According to a Wednesday U.S. Securities and Exchange 8-K filing, the Tysons, Virginia-headquartered firm co-founded by Michael Saylor purchased another 14,620 BTC for $615.7 million in cash between Nov. 20, 2023, and Dec. 26, 2023. This most recent Bitcoin cache cost MicroStrategy roughly $42,110 per BTC, inclusive of fees and other expenses.
MicroStrategy now holds an eye-popping 189,150 bitcoin, purchased at an average price of $31,168 per BTC. MicroStrategy is the largest corporate HODLer of BTC.
Michael Saylor, MicroStrategy’s chairman, revealed in a post on X that the company had spent $5.9 billion to build its BTC treasury, bought at an average price of $31,168 per coin. The price of the benchmark cryptocurrency is currently sitting at $42,927, according to CoinGecko data. This means MicroStrategy’s stash is worth $8.1 billion at today’s market prices.
MicroStrategy started buying Bitcoin in August 2020. The company’s most recent purchase before today’s announcement took place last month, where it acquired 16,130 Bitcoins for approximately $593.3 million at the time.
Will Spot Bitcoin ETFs Affect MicroStrategy’s Big Bet?
MicroStrategy’s purchase comes amid mounting optimism that the U.S. SEC could approve ETFs holding BTC as early as January 10.
Michael Saylor confidently posited that the potential launch of spot BTC ETFs in 2024 will not dampen the appeal of MicroStrategy for investors interested in getting some exposure to the world’s largest crypto by market cap. In Saylor’s view, MicroStrategy offers a unique leveraged, no-fee route for investors, which these upcoming ETFs cannot emulate.
The MicroStrategy co-founder, however, acknowledged that ETFs that invest in bitcoin rather than futures tied to BTC may be the “biggest development on Wall Street in 30 years” because such a vehicle would cause a demand shock for bitcoin, which a supply shock will soon follow in the form of April’s mining rewards halving event.
This cocktail of bullish fundamentals could indicate the market is set for the explosive upside move we’re all hoping for, spurring Bitcoin’s rise to $50,000 and beyond.