MicroStrategy Expands Bitcoin Portfolio to Nearly $6 Billion in Latest Purchase

By Aaron Feuerstein December 28, 2023 In Michael Saylor, Microstrategy
  • MicroStrategy, led by Michael Saylor, continues its Bitcoin acquisition, purchasing 14,620 more bitcoins at an average price of about USD $42,110 each, increasing its total holdings to 189,150 bitcoins.
  • Michael Saylor predicts Bitcoin will reach USD $10 million per coin within 25 years, stabilising at an annual growth rate of 15%, and believes many will regret not buying it at current prices.
  • MicroStrategy’s heavy investment in Bitcoin, which contributed to a 350% surge in its stock price in 2023, reflects a strategic trend of incorporating digital assets into corporate portfolios.
  • However, the anticipated approval of a spot Bitcoin ETF offers an alternative investment option, potentially affecting investor preferences in 2024.

MSTR Continues BTC Buying Spree

Michael Saylor has just announced that MicroStrategy (MSTR) has purchased an additional 14,620 Bitcoins for approximately USD $615.7 million (AUD $896.33 million). The average price paid was about USD $42,110 (AUD $61,491) each and as of December 26, 2023, MicroStrategy holds a total of 189,150 bitcoins. The total amount invested by MicroStrategy in Bitcoin is around USD $5.9 billion (AUD $8.61 billion), with an average purchase price of USD $31,168 (AUD $45,501) per Bitcoin.

Michael Saylor’s MicroStrategy has been buying the dips and the highs when it comes to Bitcoin (BTC). Yes, the MSTR Chairman is so convinced of the success of Bitcoin that he really does not seem to care much at what price point he buys. And it makes sense when you think about his price predictions. During the Australian Crypto Convention in Melbourne in November he revealed his USD $6 million (AUD $9.4 million) price target.

Saylor’s Daring BTC Price Predictions

Saylor said a lot of people would be very disappointed not to have bought it when it was “cheap”- let alone at current (2023) prices.

There’s going to be a bunch of people really angry at themselves that they didn’t buy it at $1,000,000 a coin.

Michael Saylor

Saylor even believes that over the years BTC will eventually stabilise at 15% annual growth reaching USD $10 million (AUD $14.6 million) a coin within the next 25 years.

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MicroStrategy vs Exchange Traded Funds

MSTR share price has seen a huge uptick in 2023, with an increase of over 350%. The growth is likely due to the anticipation of the approval of the spot Bitcoin exchange-traded funds (ETF) in the US. Currently, MSTR’s shares are trading at USD $670 (AUD $975), a 11% increase in the past 24 hours.

Popular platform Seeking Alpha suggests that while the firm’s strategy of using low-interest debt to invest in Bitcoin could be highly rewarding, the upcoming Bitcoin ETFs present an alternative investment option. This could be more appealing to some investors in 2024, Mike Fay from Seeking Alpha explains.

At this point, I think it’s generally understood that buying MSTR is essentially a leveraged bet on Bitcoin. The company has low-interest debt that it used to buy BTC. And assuming that BTC appreciates in value at a rate that exceeds the expense on that debt, it’s a terrific corporate treasury strategy that should yield significant returns for equity holders. But with the impending approval of a spot ETF in the United States, is there any sense in longing MSTR rather than one of these new ETFs in 2024?

Mike Fay, Seeking Alpha

Aaron Feuerstein
Author

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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