MicroStrategy, a business intelligence company, just added another 10,107 Bitcoin (BTC) to its collection, shelling out a cool $1.1 billion. This brings their total BTC holdings to a whopping 471,107!
Staying the Course Despite Market Dip
Even though the overall crypto market has taken a bit of a hit recently (dropping from $3.75 trillion to $3.55 trillion), MicroStrategy isn’t backing down. Their latest purchase averaged $105,596 per Bitcoin, boosting their total holdings to roughly $30.4 billion. Their average purchase price sits at $64,511 per Bitcoin. CEO Michael Saylor even bragged about a 2.90% year-to-date (YTD) return on their Bitcoin investment (which he calls “BTC Yield”).
Criticism and Future Plans
Not everyone’s thrilled. Financial commentator Peter Schiff pointed out that MicroStrategy’s average purchase price keeps climbing, raising concerns about potential losses if the Bitcoin price drops further.
But MicroStrategy isn’t slowing down. They’ve filed paperwork with the SEC to make future Bitcoin purchases easier. This “shelf registration” lets them quickly raise money when the market’s good without jumping through hoops each time. They also announced a new convertible preferred stock offering.
Trump’s Influence and Tax Troubles?
Some believe that Donald Trump’s presidential win might be encouraging more companies to invest in crypto, thanks to his pro-crypto stance during his campaign. However, MicroStrategy might face a hefty tax bill – potentially over $19 billion – on its unrealized Bitcoin profits.
Current Market Conditions
At the time of writing, one Bitcoin is trading around $101,648, down slightly for the day.
