TL;DR
-
MicroStrategy has purchased another 12,333 BTC for approximately $347 million USD in cash according to statement from yesterday.
-
On the one hand, any entity holding that much BTC could be dangerous to the market as a whole – if they suddenly decided they no longer believe in BTC, they would have the opportunity to flood the market and temporarily tank Bitcoin. price.
-
On the other hand, MSTR not only single-handedly increases the amount of institutional investments by billions, they have also become a kind of proxy way for individuals to invest in BTC, without investing in BTC.
Full story
It’s been a while since we discussed MicroStrategy (MSTR) and Michael Saylor (aka “Bitcoin Daddy”).
ICYMI, old Mick is the founder of MSTR – and one enormous BTC maximum.
(He believes that BTC – and only BTC – will completely change the financial system).
Since we last reviewed MSTR, two big things have happened:
-
The company has purchased another 12,333 BTC for approximately $347 million USD in cash, according to the company statement from yesterday.
-
The value of BTC has risen above MSTR’s “base” (aka their breakeven point) of $29,670.
Here’s why this is important:
When the value of BTC fell to ~$16,500, there was talk that MSTR would collapse if it fell just a few more thousand dollars (below $13,000).
They are a publicly traded company and were seen by many as a reckless investment.
BTC’s value is up ~80% since the start of 2023 and MSTR’s share price is up nearly 125% YTD.
On the one hand, any entity holding that much BTC could be dangerous to the market as a whole – if they suddenly decided they no longer believe in BTC, they would have the opportunity to flood the market and temporarily tank Bitcoin. price.
On the other hand, are you familiar with all the talk about BTC ETFs right now?
MSTR not only single-handedly increases the amount of institutional investment by billions, they have also become a kind of proxy way for individuals to invest in BTC, without investing in BTC.
There are pros and cons of other companies following in MSTR’s footsteps.
Now you know it 🙂