Why MicroStrategy Keeps Buying Bitcoin: What's Behind the Move

MicroStrategy’s Bitcoin Investment: What’s Behind Their Strategy?

MicroStrategy's Continued Bitcoin Buying Spree

MicroStrategy, the business intelligence firm, recently made headlines by acquiring an additional 21,550 bitcoins for approximately $2.1 billion between December 2 and December 8, 2024. 

This purchase was conducted at an average price of about $98,783 per bitcoin, funded through the issuance and sale of company shares. This transaction adds to MicroStrategy’s already massive bitcoin holdings, bringing their total to around 423,650 bitcoins, acquired at an average cost of roughly $60,324 per coin.

Bitcoin Downturn as MicroStrategy Stays Resilient

The Bitcoin market has been experiencing a downturn recently. With its current market cap around $1.92 trillion, the price of Bitcoin has decreased by approximately 1.72% over the last 24 hours, currently standing at $97,057.97 reflecting a period of price correction. The market cap has also seen around a 2.54% decrease over the past week, indicating a short-term decline in investor confidence and market activity. Despite this recent drop, MicroStrategy is presenting a resilient behavior as they are continuously buying bitcoins irrespective of the downturn.

MicroStrategy’s Strategy Behind Bitcoin Buying

Despite a volatile market where the price of bitcoin wobbled below the $95,000 on Monday during the acquisition period, MicroStrategy’s founder and CEO, Michael Saylor, has remained steadfast in his vision. Saylor’s strategy is not only a bet on the potential long-term appreciation of bitcoin but also reflects a broader belief in bitcoin as a store of value akin to digital gold. 

In an interview on Yahoo Finance’s Market Domination, Saylor confidently stated that he believes he will be buying Bitcoin at $1 million per coin and $1 billion of Bitcoin daily. His firm’s leadership views bitcoin as a hedge against inflation and currency devaluation, especially in the face of macroeconomic uncertainties.  This belief is underscored by their ongoing commitment to accumulate bitcoins despite price dips and market fluctuations.

Michael Saylor’s Bitcoin Long-Term Strategy

He says, "Every day for the past four years, I’ve said buy Bitcoin, don’t sell Bitcoin,” he stated, underscoring his consistent advocacy for long-term holding.

For Saylor, the success of Bitcoin isn’t just a moment to celebrate but a testament to a strategy he’s championed for years. His philosophy is simple yet profound—treat Bitcoin as a long-term investment.

The Vision and Next Steps for MicroStrategy

MicroStrategy’s vision extends beyond just holding bitcoin; it’s about establishing a corporate strategy that leverages digital assets for long-term growth and stability. The company’s significant bitcoin purchases reflect a belief in the transformative potential of blockchain technology and digital currencies. 

Going forward, MicroStrategy aims to continue building its bitcoin position, viewing it as a strategic asset that can provide long-term value to shareholders. This strategy suggests that even when the bitcoin market experiences downturns, MicroStrategy is prepared to hold firm and continue buying, confident in their long-term outlook.