Strategy (formerly known as MicroStrategy) announced a new Bitcoin purchase deal. The company acquired 4,225 Bitcoins for $472.5 million, bringing its total holdings to 601,550 Bitcoins. This acquisition came at the peak of the digital currency's rise, with its trading price at $111,827.
Michael Saylor, the CEO of Strategy, noted that the company achieved a return of 20.2% on its Bitcoin investments, which amounted to $42.87 billion, with an average purchase price of $71,268 per Bitcoin. As the price of Bitcoin currently approaches $120,000, Strategy's investments have seen a notable increase in value, reinforcing Saylor's position on the future of the digital currency.
Strategy's long-term Bitcoin strategy
Saylor was clear in his predictions about the future of Bitcoin, indicating that the value of the digital currency could reach $21 million over the next 21 years. These predictions highlight Strategy's long-term strategy in acquiring Bitcoin. The company is currently achieving a gain of 66.95% on its Bitcoin holdings, confirming the success of its investment approach.
The increased investment in Bitcoin was funded through the sale of company shares. Strategy recently sold thousands of MSTR shares and other preferred shares, allowing it to acquire more Bitcoin. Despite criticisms and concerns from some quarters, the company continues its approach and maintains an aggressive investment model to increase its cryptocurrency reserves.
In his latest response on the Bitcoin podcast, he said: "We all need to have more Bitcoin,
The company maintains its Bitcoin reserves by following an approach that encourages the digital currency's value to rise over time. Furthermore, the continuous acquisition of Bitcoin is used as a tool to diversify and enhance its financial portfolio. With this strategy, the company has attracted the interest of investors and analysts, who point out that incorporating Bitcoin into the balance sheet of a large company could change the investment landscape.
A remarkable performance over the past year. The MSTR stock rose by 12.90%, reaching $447.66. This represents a significant increase from its price of $86.69 per share last year.
Investors who followed the company’s strategy (such as Metaplanet) have achieved positive returns due to the rising value of Bitcoin and MSTR shares. The investment strategy approach has provided stability in the value of its shares, especially considering the company's increasing reserves of cryptocurrencies and its long-term growth prospects.
