MicroStrategy Buys $835M in BTC, Holdings Reach 649,870 Coins
MicroStrategy has continued its incremental Bitcoin accumulation via OTC deals, purchasing 430 BTC on August 18 for $51.4 million and later acquiring 8,178 BTC at an average price of $102,100 for $835 million. These purchases raise its total holdings to 649,870 BTC, with a cumulative acquisition cost of $48.4 billion and unrealized gains of about $13.3 billion. Executive Chairman Michael Saylor dismissed sell rumors and reiterated a strict buy-and-hold strategy. Controlling over 3% of Bitcoin’s 21 million supply, MicroStrategy remains the largest corporate Bitcoin holder. This aggressive accumulation occurred amid a 25% pullback in Bitcoin prices from October highs (around $94,200) and a 16% drop in MicroStrategy’s share price over five days, underscoring the company’s long-term confidence in Bitcoin despite market volatility.
Bullish
The continued large-scale Bitcoin purchases by MicroStrategy and its reaffirmation of a buy-and-hold strategy signal strong corporate demand for BTC, which is likely to support Bitcoin prices. In the short term, market volatility and share price fluctuations of MicroStrategy may cause neutral reactions, but the long-term commitment from a major corporate holder underpins bullish market sentiment for Bitcoin. Historically, significant corporate accumulation has correlated with price appreciation, suggesting that this news could drive positive momentum in the crypto market.