MicroStrategy's bitcoin bet is paying off
MicroStrategy has significantly increased its bitcoin holdings to 331,200 BTC, valued at approximately $30.9 billion, which is about 1.7% of the total circulating supply. This aggressive acquisition strategy poses a challenge for any potential U.S. government effort to establish a strategic bitcoin reserve, particularly with mentions of a potential 1 million BTC target. While it's uncertain if the U.S. government will truly seek to incorporate bitcoin as a reserve asset, MicroStrategy's buying spree could drive prices up before the government makes any purchases. Over the past years, MicroStrategy's daily bitcoin purchases have tallied into the millions, culminating in a substantial investment of $4.6 billion in mid-November. This correlation has also enhanced the company's stock performance, which has increased over 3,000% in the past five years. The firm continues to benefit, as its market cap has soared alongside its bitcoin treasury. As MicroStrategy executives have profited significantly from selling shares, the company appears well poised to continue benefitting from its bold investments in bitcoin.
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