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Manage options Manage services Manage {vendor_count} vendors Read more about these purposes Accept Deny View preferences Save preferences View preferences Cookie Policy Privacy Policy {title} Skip to content Skip to footer 8K Menu * Write * Press Release * Events * Menu * Write * Press Release * Events * Crypto-News.netNews from the world of cryptocurrencies * Write * Press Release * Events Featured MICROSTRATEGY SECURES $4.6 BILLION IN BITCOIN AS PRICES SOAR TO NEW HEIGHTS ByDaniel Nwokolo 9 hours ago 0Comments Popular US-based business intelligence company, MicroStrategy announced on November 18 that it acquired 51,780 Bitcoin for $4.6 Billion. Notably, the company kept buying BTC in this previous week even as the token continued to break its all-time highs. Speaking on the recent purchase in a post on X, Michael Saylor, Founder and Chairman at MicroStrategy, highlighted the company’s bold accumulation. For context, Saylor’s tweet highlights MicroStrategy’s aggressive Bitcoin accumulation strategy and the company’s belief in BTC as a long-term asset with the firm paying a striking average price of about $88,627 per Bitcoin ($4.6 billion in total). Accordingly, this is significantly higher than their overall average acquisition cost of approximately $49,874 for their total holdings of 331,200 BTC, purchased for $16.5 billion, according to Michael Saylor. While this move demonstrates strong confidence in Bitcoin’s value appreciation, buying at such high prices exposes the company to significant risks if the market corrects or enters a bearish phase. Meanwhile, the company chairman also boasts impressive Bitcoin yield figures of 20.4% quarter-to-date (QTD) and 41.8% year-to-date (YTD). In a nutshell, these returns indicate substantial price appreciation for Bitcoin in 2024, which has benefited MicroStrategy’s holdings. However, these yields remain unrealized gains unless the company decides to liquidate or monetize a portion of its holdings. This underscores the risks of MicroStrategy’s long-term “HODL” strategy, which ties its financial health and stock value directly to Bitcoin’s often volatile market performance. Saylor further discloses that MicroStrategy’s 20.4% QTD BTC yield occurred in the first half of November, equating to ~51,470 BTC in shareholder benefits, likely due to Bitcoin’s price surge. It is noteworthy that this ties closely to their latest acquisition of 51,780 BTC at a high price, suggesting they are capitalizing on bullish momentum. However, these gains are unrealized and depend on market conditions, reflecting potential upside and significant risk in their Bitcoin-focused strategy. Notedly, the company’s significant purchases can influence Bitcoin’s price. This may partially explain the price appreciation if their acquisitions coincide with limited supply or high demand. IMPLICATIONS MicroStrategy’s massive allocation to Bitcoin, valued at $16.5 billion, demonstrates institutional confidence in the asset. If Bitcoin continues its upward trajectory, MicroStrategy’s holdings will increase in value, and the company could see exponential returns. Yet, it also reveals a high-risk concentration. To clarify, the firm’s decision to buy at a premium, as seen in the latest purchase price, may impact its profitability if Bitcoin’s value does not continue to rise. Furthermore, this strategy may seem visionary in a bull market, but it leaves the company highly vulnerable during downturns when unrealized losses could harm investor sentiment and financial stability. While the strategy aligns with MicroStrategy’s belief in Bitcoin as a store of value, its success depends entirely on the cryptocurrency’s long-term price trajectory. Tags: bitcoinCryptoCryptocurrencyMichael SaylorMicroStrategy Share Post POST NAVIGATION Previous NEXT-GEN GAMIFIED LAUNCHPAD LAUNCHPUNKS GOES LIVE WITH GHOSTY CASH November 18, 2024 Next NORTHSTAKE LAUNCHES GAME-CHANGING ETH VALIDATOR MARKETPLACE AS 3IQ LEADS INSTITUTIONAL ADOPTION November 18, 2024 Leave a comment LEAVE A COMMENT CANCEL REPLY Name E-mail Comment I agree that my submitted data is being collected and stored. For further details on handling user data, see our Privacy Policy. Leave a comment LEGAL * Privacy * Terms * Contact * About SOCIALS XLinkedIn © 2024 CryptoNews. All Rights Reserved. Manage consent