MicroStrategy, led by Michael Saylor, has made another significant Bitcoin purchase, acquiring an additional 3,000 Bitcoin for $155 million. The average price of these purchases was $51,813, and they were made between February 15 and 25. As a result, MicroStrategy’s total Bitcoin holdings now stand at 193,000 Bitcoin, which were acquired for $6.09 billion at an average price of $31,544. It’s worth noting that MicroStrategy is currently the largest publicly traded holder of Bitcoin.
Interestingly, this acquisition was announced amidst a hacking incident that affected MicroStrategy’s social media account. The hacker posted fraudulent links related to token airdrops, leading to the theft of over $440,000. Fortunately, this incident did not deter MicroStrategy from continuing its Bitcoin investment strategy.
MicroStrategy’s recent Bitcoin purchase aligns with predictions made by senior Bloomberg analysts. They believe that Bitcoin exchange-traded funds (ETFs) could surpass gold ETFs in terms of assets under management (AUM) within the next two years. According to a research report by Eric Balchunas and Andre Yapp, the successful launch of Bitcoin ETFs would introduce more competition for gold as an investment option.
Data from Farside Investors reveals that the ten Bitcoin ETFs in the United States have accumulated a total of 5,500 Bitcoin since their launch on January 11. These ETFs have attracted over $5 billion in net assets, while gold ETFs have amassed $3.6 billion during the same period. Balchunas and Yapp suggest that gold ETFs may struggle to maintain their $90 billion in assets due to the underperformance of gold prices.
Saylor himself has expressed his unwavering commitment to Bitcoin, stating that he plans to continue buying the cryptocurrency indefinitely. He believes that Bitcoin is technically superior to traditional assets like gold, real estate, and the S&P 500, and therefore sees no reason to sell it.
Currently, Bitcoin is trading at $51,314, experiencing a slight decline of 0.67% in the past 24 hours. These developments in the Bitcoin market further emphasize the growing prominence of Bitcoin ETFs and their potential impact on traditional investment options like gold.