After consistently adding to its Bitcoin holdings for the past 12 weeks, MicroStrategy has decided to temporarily halt its buying spree. The company now holds 471,107 BTC, amounting to over $30 billion in value.
Executive Chairman Michael Saylor said in a statement that the company did not sell any ordinary stock between January 27 and February 2, therefore changing its recent approach to acquiring Bitcoin by means of stock transactions.
An Evolution of Bitcoin Investment
MicroStrategy first entered the Bitcoin market in August 2020, investing an initial $250 million for 21,454 BTC. It has kept raising its holdings since then, establishing itself as one of the biggest companies possessing Bitcoins. The company’s aggressive acquisition approach has helped it become quite active in the crypto market.
Market Effect and Price Movement of Bitcoin
After the news, Bitcoin dropped momentarily below $100,000 as markets responded to geopolitical and economic events, including the U.S. government’s declaration of more tariffs on China, Mexico, and Canada. But BTC swiftly recovered above $98,000 as negotiations resulted in a delay in tariff application.
The growing attractiveness of Bitcoin as a reserve currency
Not only MicroStrategy sees Bitcoin as a valuable asset. Several companies, including Semler Scientific and Rumble, have recently invested significant amounts in BTC. Additionally, discussions about national Bitcoin reserves are gaining traction, with government agencies exploring potential stockpiles.
As Bitcoin continues to be a focal point in financial markets, MicroStrategy remains steadfast in its long-term holding strategy, reinforcing its belief in the digital assetâ€TMs value over time.
