On Monday, the business intelligence giant Microstrategy made headlines with its announcement of a notable Bitcoin (BTC) acquisition. This move comes as the leading cryptocurrency has surged to a new all-time high of $82,500, marking a significant milestone with increased participation across various sectors in the past week.
MicroStrategy’s Expanding Bitcoin Portfolio: Now Valued at Nearly $23 Billion
Bitcoin enthusiast and MicroStrategy CEO, Michael Saylor, took to social media to share the company’s latest purchase of around 27,200 BTC. This acquisition, valued at approximately $2.03 billion, stands as one of the most substantial corporate purchases of Bitcoin to date. It aligns with the company’s ongoing strategy to weave cryptocurrency into its financial operations.
According to a statement released on Monday, these Bitcoin purchases occurred between October 31 and November 10, funded by the proceeds from recent stock sales. With this addition, MicroStrategy’s total Bitcoin holdings have reached nearly $23 billion, accumulating approximately 279,420 BTC at an average purchase cost of $42,692 per Bitcoin.
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Michael Saylor further disclosed that since the start of November, MicroStrategy’s treasury operations have yielded a 7.3% return on BTC, translating into a net benefit of roughly 18,410 Bitcoin for its shareholders. This strategic maneuver has also positively influenced MicroStrategy’s stock value, with MSTR shares surging 11% following the announcement, currently trading at approximately $299 per share, up from $270 the previous week.
The Post-Election Bitcoin Bull Run
The recent bullish trend in Bitcoin prices coincides with a shift in investor sentiment after Donald Trump’s victory in the recent US presidential election, where he triumphed over Vice President Kamala Harris. CoinShares reports show that digital asset investment products witnessed inflows of $1.98 billion post-election, marking the fifth consecutive week of positive inflows and bringing the year-to-date total to a record $31.3 billion.
Alongside Bitcoin, the overall global assets under management (AuM) in cryptocurrencies have escalated to an all-time high of $116 billion. US investors were the primary contributors, infusing $1.95 billion, while European markets, particularly in Switzerland and Germany, also experienced modest inflows. Bitcoin alone garnered $1.8 billion of these inflows, highlighting a broader trend initiated by the US Federal Reserve’s interest rate cuts in September.
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Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted that the burgeoning optimism in the crypto market stems from a wave of “euphoria” after Trump’s election. Streeter pointed out that his commitment to embracing cryptocurrency has propelled BTC to “new, heady heights.” She believes Trump’s inclination towards supporting the crypto industry has fostered a more favorable regulatory environment, thereby enhancing investor confidence.
In alignment with this sentiment, Citi strategists emphasized that cryptocurrencies remain among the few Trump-related trades that have not reversed course. They suggested that anticipated crypto-friendly policies under his administration could bring about greater regulatory clarity in the US, spurring further investment.
As Bitcoin continues its upward trajectory, some market analysts predict the possibility of BTC reaching the $100,000 mark by year’s end, driven by a blend of positive market dynamics and burgeoning institutional adoption.
At the time of writing, Bitcoin is trading at $82,479, marking a 20% increase over the past week alone.
