Strategy (Previously MicroStrategy) has once again reinforced its position as the largest corporate holder of Bitcoin, purchasing an additional 13,390 BTC last week for approximately $1.34 billion.
The acquisition was made at an average price of $99,856 per Bitcoin, signaling continued bullish sentiment from the company despite Bitcoin trading near its all-time highs. This latest purchase brings MicroStrategy’s total Bitcoin holdings to 568,840 BTC, currently valued at around $59.08 billion.
The company’s average purchase price across all acquisitions now stands at $69,287 per Bitcoin, meaning it holds an unrealized profit of approximately $19.66 billion.
MicroStrategy’s Michael Saylor Champions Bitcoin as Inflation Hedge and Store of Value
Under the direction of Executive Chairman Michael Saylor, MicroStrategy has been a steadfast and outspoken supporter of Bitcoin as an inflation hedge and store of value.
The company has regularly made transactions utilizing a combination of cash, debt, and equity financing since launching its Bitcoin plan in 2020.
MicroStrategy has established itself as a de facto institutional Bitcoin fund in addition to being a business intelligence company thanks to its aggressive accumulation approach.
Even in the face of market volatility and regulatory uncertainty, the company’s most recent action underlines its long-term faith in Bitcoin.
MicroStrategy continues to be a predictor of corporate cryptocurrency adoption and strategic digital asset accumulation as institutional interest in crypto increases.
Also Read: MicroStrategy Buys 1,895 More BTC for $180.3M, Pushing Total Holdings to 555,450 Bitcoin
Strategy’s Bitcoin Buy Comes Parallel to Metaplanet Adding More Bitcoin to Its Reserves
The Tokyo-based investment business Metaplanet has also added a substantial amount of Bitcoin to its portfolio, purchasing an extra 1,241 BTC for 18.4 billion yen, or about $126 million.
The company’s entire Bitcoin treasury now stands at 6,796 BTC after its most recent acquisition, which was revealed on Monday.
That is worth more than $706 million at today’s market pricing. Metaplanet has now overtaken El Salvador’s 6,174 BTC holdings, according to data from the official Bitcoin Office.
Joining an increasing trend of institutional accumulation, the acquisition is a daring move by Metaplanet to link its investing strategy with Bitcoin.
Following in the footsteps of prominent heavyweights such as Strategy, the company has established itself as one of Asia’s largest corporate Bitcoin holders.
Also Read: Metaplanet Acquires 555 More BTC, Boosts Holdings to 5,555 Bitcoin
Firms’ Aggressive Bitcoin Purchases Reflect Growing Institutional Trust Amid Economic Uncertainty
This aggressive treasury allocation by the firms highlights growing institutional trust in Bitcoin as an inflation hedge and long-term store of wealth, particularly in the face of fiat currency depreciation and global economic turmoil.
Corporate Bitcoin buying has surged in the past two months due to several key factors. The introduction of favorable accounting guidelines by the Financial Accounting Standards Board (FASB) now allows companies to mark Bitcoin to market, enabling them to recognize profits as its value rises.
Additionally, reduced reputational risk and growing institutional acceptance of Bitcoin have made it a more attractive asset for corporate treasuries.
Bitcoin’s performance, surpassing $100,000 and outperforming traditional assets like gold and the S&P 500, has positioned it as a hedge against inflation and currency devaluation.
With these developments, corporate Bitcoin adoption is accelerating, with over 80 public companies holding Bitcoin by 2025, up from 33 in 2023.