MicroStrategy Continues Bitcoin Buying Spree Ahead of Potential ETF Approval

MicroStrategy has once again demonstrated its unwavering commitment to Bitcoin, acquiring an additional 14,620 BTC for a staggering $615.7 million in cash. The recent purchase, made between November 20, 2023, and December 26, 2023, was disclosed in the company’s 8-K filing with the U.S. Securities and Exchange Commission.

BTC ETF Anticipation: MicroStrategy Grows Holdings

MicroStrategy’s latest Bitcoin stash, obtained at an average cost of approximately $42,110 per BTC, contributes to the company’s impressive aggregate holdings, now totaling 189,150 BTC. This accumulation comes at an aggregate purchase price of around $5.9 billion, with an average cost per Bitcoin of roughly $31,168.

This move follows a substantial acquisition in November 2023, where MicroStrategy procured 16,130 Bitcoins at a price of $36,785 per Bitcoin. Prior to that, the company made notable purchases of 6,067 BTC in September and October 2023 and 12,333 BTC in June, signaling a consistent and aggressive approach to Bitcoin investment.

MicroStrategy’s relentless pursuit of Bitcoin aligns with the vision of its co-founder and prominent Bitcoin advocate, Michael Saylor. Saylor has expressed the belief that a spot Bitcoin exchange-traded fund (ETF) could mark the “biggest development on Wall Street in 30 years.”

The timing of MicroStrategy’s latest acquisition is noteworthy, given the widespread anticipation surrounding January 10, a date when the crypto community expects potential approval for a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC).

Saylor argues that a spot Bitcoin ETF could be a game-changer, opening the doors for mainstream retail and institutional investors who have been previously unable to access Bitcoin. However, not everyone shares this optimistic view.

Bitcoin analyst Josef Tětek from Trezor raises concerns about the implications of a spot Bitcoin ETF. Tětek suggests that such an ETF could distance individuals from self-custody, potentially leading to the creation of “millions of unbacked Bitcoin.” Skeptics, including BitMEX co-founder Arthur Hayes, go even further, warning that if spot Bitcoin ETFs prove too successful, they could “completely destroy” the integrity of Bitcoin.

As the industry eagerly awaits the SEC’s decision on the potential approval of a spot Bitcoin ETF, MicroStrategy’s ongoing Bitcoin acquisitions underscore the company’s dedication to digital assets and its belief in the transformative power of cryptocurrencies.

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