MicroStrategy has increased its Bitcoin holdings once again, acquiring 850 BTC for $99.7 million, just after the US Federal Reserve announced its first interest rate drop in years. The action demonstrates the company’s long-term faith in Bitcoin (BTC) as a key component of its business plan.
According to a filing with the United States Securities and Exchange Commission (SEC) on Monday, the transaction occurred during the week ending Sunday.
Strengthening Its Position as the Largest Corporate Bitcoin Holder
MicroStrategy, led by Executive Chairman Michael Saylor, continues to be the biggest publicly listed Bitcoin holding firm. Since establishing Bitcoin as its principal treasury reserve asset in 2020, the company has continuously amassed more BTC with each market opportunity.
At an average price of $73,971 per coin, the company acquired 639,835 BTC for around $47.3 billion. This recent buy happened at an average price of $117,344 per Bitcoin, as BTC temporarily surpassed $117,000 after the Fed’s 25 basis point rate drop, according to CoinGecko statistics.
Rate Cuts Boost Institutional Appetite for Bitcoin
The Federal Reserve’s interest rate decrease represents a dramatic change in US monetary policy, lowering borrowing costs and boosting investment in riskier assets such as cryptocurrency. With inflation fears still present, investors are increasingly seeing Bitcoin as a hedge against the dollar’s fall and a store of value comparable to digital gold.
MicroStrategy’s Bitcoin acquisition is consistent with this trend, validating the emerging institutional narrative that Bitcoin can be used as both a strategic inflation hedge and an alternative investment asset.
Institutional Confidence in Bitcoin Continues to Grow
Recently, the crypto market has experienced an increase in institutional acceptance. The approval of spot Bitcoin ETFs by US authorities, together with new investment products from big financial institutions such as BlackRock and Fidelity, has restored credibility to the digital asset industry.
These changes have strengthened market sentiment, with institutional investors taking a larger share of Bitcoin trading volume than regular traders.
Strategy Adds 220 BTC Worth $27.2 Million Amid Market Volatility
A Testament to Bitcoin’s Long-Term Value
MicroStrategy’s continual BTC purchases show a strong belief in Bitcoin’s long-term prospects. These large-scale purchases may have an effect on market supply dynamics, affect investor sentiment, and attract the attention of both retail and institutional participants.
For common investors, MicroStrategy’s aggressive Bitcoin strategy represents a bigger trend: publicly listed corporations are increasingly incorporating Bitcoin into their treasury management strategies.
With the Federal Reserve projecting a more liberal monetary policy, economists anticipate sustained interest in Bitcoin and other digital assets. For Michael Saylor and MicroStrategy, this $100 million investment reinforces a basic belief: Bitcoin is digital gold, a rare asset designed to maintain value in the face of global economic turmoil.
Source: cointelegraph
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