Wednesday, 25/12/2024: 'Whale' MicroStrategy Accumulates Bitcoin as Prices Drop

MicroStrategy, the world’s largest Bitcoin holder, has purchased an additional 5,262 BTC, bringing the total value of its Bitcoin holdings to over $42 billion after a sharp price drop last week.

Saylor

The company announced that it bought 5,262 Bitcoin (BTC) for a total of $561 million last week. This brings their total Bitcoin holdings to 444,262 BTC, valued at approximately $42.2 billion.

CEO Michael Saylor stated that the average price of this purchase was $106,622 per Bitcoin. Taking into account the full Bitcoin holdings, their average cost per unit is $62,257.

This announcement came on the same day that MicroStrategy began trading as a member of the Nasdaq 100 index. The company’s stock remained relatively stable at over $364.2.

Founded 35 years ago, MicroStrategy has primarily operated in the software industry. Last year, its stock surged by 337%, making it one of the top companies in the U.S. with a market capitalization of over $5 billion. This remarkable growth outpaced even companies like Nvidia and Meta, thanks to its Bitcoin acquisition strategy.

The company began buying Bitcoin in mid-2020, betting that the cryptocurrency would help it thrive in a competitive market. Currently, about 90% of the company’s value is tied to its Bitcoin holdings.

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From MicroStrategy’s perspective, Bitcoin is still undervalued.

Their continued accumulation, even during price drops, shows they believe in its long-term potential.