As a seasoned analyst with over two decades of experience in the financial markets, I find these recent developments in the Bitcoin space particularly intriguing. MicroStrategy’s aggressive Bitcoin buying strategy has caught my attention, and it seems that CEO Michael Saylor is leading the charge for corporates to adopt Bitcoin as a treasury reserve asset.
MicroStrategy recently spent $1.5 billion on Bitcoin, while Marathon Digital Holdings is aiming to raise an additional $700 million to increase its Bitcoin investments.
Through the recent acquisition, MicroStrategy now holds approximately 15,400 more bitcoins, boosting its existing portfolio to a grand total of 402,100. This means that the company currently owns close to 2% of the entire 21 million Bitcoin supply, which is the maximum amount that can ever be created.
Public Companies Continue an Extensive Trend of Bitcoin Purchases
With this recent transaction, MicroStrategy has solidified its position as the top corporate Bitcoin owner, having acquired more than $12 billion in Bitcoin last November. This most recent purchase was made at an average cost of approximately $95,976 per bitcoin.
Contrary to expectations, MicroStrategy’s stock dipped approximately 1% during Monday’s market activity. However, its growth this year has mirrored Bitcoin’s surge, increasing by almost 500%. This impressive rise has positioned MicroStrategy among the top 100 publicly traded companies in the United States.
Ever since I made my first Bitcoin investment back in 2020, I’ve been an advocate for corporations to consider Bitcoin as a valuable treasury reserve asset. More recently, I’ve even extended this recommendation to the esteemed board of directors and CEO Satya Nadella at Microsoft, suggesting they should leverage digital capital to power their operations, making Microsoft Bitcoin-empowered.
In early October, Microsoft’s board advised its stockholders to reject a proposition advocating for Microsoft to expand its investment options by including Bitcoin.
Entrepreneur Thomas Less stated on CNBC today that the availability of Bitcoin for over-the-counter transactions is quite limited at present, leading to a shortage in supply. He further explained that if Bitcoin’s value surpasses $100,000, it could trigger a massive demand surge, or a “chase”. Despite this, Less remains optimistic that Bitcoin will end the year significantly higher than $100,000; he believes it’s just a matter of time before this happens.
Marathon Digital Holdings (MARA), a Bitcoin mining company, recently announced a $700 million private offering of notes due in 2031. These notes, which are exempt from interest, will be offered under the Securities Act and are intended for institutional investors, depending on market conditions.
These advancements underscore the increasing enthusiasm towards Bitcoin as a tactical investment among publicly listed corporations. Such companies are clearly expressing a highly optimistic perspective regarding the primary cryptocurrency. In fact, Pantera Capital forecasts that Bitcoin could potentially reach $740,000 by 2028.
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2024-12-02 22:59