Microstrategy's Bitcoin Holdings Reach 189,150 BTC
Nasdaq-listed software intelligence firm Microstrategy has further increased its bitcoin holdings by acquiring an additional 14,620 BTC for approximately $615.7 million. With this latest purchase, the company now holds a total of 189,150 bitcoin, acquired at an average price of $31,168 per coin, totaling approximately $5.9 billion in value.
Microstrategy's Bitcoin Acquisition Details
Microstrategy's Executive Chairman, Michael Saylor, revealed the recent acquisition on social media platform X, stating that the new bitcoin purchase was made at an average price of $42,110 per coin. The additional coins were acquired between November 30 and December 26, as stated in the company's filing with the U.S. Securities and Exchange Commission (SEC).
Since adopting its bitcoin strategy on August 10, 2020, Microstrategy has seen significant gains. Saylor shared that the price of BTC has surged by 253% during this period, while traditional investments such as the S&P 500 and Nasdaq saw much smaller increases of 40% and 35%, respectively. In contrast, gold remained stagnant, silver experienced a decline of 14%, and bonds plummeted by 18%.
Microstrategy's Bitcoin Strategy
Michael Saylor has been a vocal advocate for Bitcoin, considering it a dependable store of value and an attractive long-term investment asset. He believes that BTC has more appreciation potential compared to holding cash. Saylor has also emphasized that Bitcoin represents the digital transformation of capital and that many are realizing they are underallocated in this asset.
Saylor further stated that spot bitcoin exchange-traded funds (ETFs) could be the most significant development on Wall Street in the last 30 years. Currently, the SEC is evaluating 13 spot bitcoin ETF applications, and the market expects the approval of multiple ETFs by January 10.
Conclusion
Microstrategy's continued acquisition of bitcoin demonstrates the company's confidence in the long-term value and potential of the cryptocurrency. With a substantial holding of 189,150 BTC, Microstrategy solidifies its position in the digital asset market and sets an example for other institutions considering bitcoin as part of their investment strategy.
What are your thoughts on Microstrategy's bitcoin acquisition and its current holding of 189,150 BTC? Share your opinions in the comments section below.
Frequently Asked Questions
Can the government steal your gold?
The government cannot take your gold because you own it. You have earned it by working hard for it. It belongs entirely to you. This rule could be broken by exceptions. If you are convicted of fraud against the federal government, your gold can be forfeit. If you owe taxes, your precious metals could be taken away. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
What is the best way to hold physical gold?
Not only is gold paper currency, but it's also money. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Many Americans today prefer to invest in precious metals, such as silver and gold, over stocks and bonds. Even though owning gold is not a guarantee of making money, there are many reasons why you might want to add gold to your retirement savings portfolio.
Gold has historically performed better during financial panics than other assets. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. Gold was one of the few assets that performed better than stocks during turbulent market conditions.
The best thing about gold investing is the fact that there's virtually no counterparty risk. If your stock portfolio goes down, you still own your shares. If you have gold, it will still be worth your shares even if the company in which you invested defaults on its debt.
Finally, gold provides liquidity. This means you can easily sell your gold any time, unlike other investments. Gold is liquid and therefore it makes sense to purchase small amounts. This allows you to profit from short-term fluctuations on the gold market.
What are some of the benefits of a gold IRA
The best way to save money for retirement is to place it in an Individual Retirement Account. It will be tax-deferred up until the time you withdraw it. You are in complete control of how much you take out each fiscal year. There are many types to choose from when it comes to IRAs. Some are better suited for college students. Others are intended for investors seeking higher returns. Roth IRAs let individuals contribute after age 591/2 and pay tax on any earnings at retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This account may be worth considering if you are looking to retire earlier.
A gold IRA is similar to other IRAs because it allows you to invest money in various asset classes. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. This eliminates the need to constantly make deposits. To ensure that you never miss a payment, you could set up direct debits.
Gold is one of today's most safest investments. It is not tied to any country so its value tends stay steady. Even during economic turmoil, gold prices tend to stay relatively stable. Therefore, gold is often considered a good investment to protect your savings against inflation.
What is a Precious Metal IRA?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Precious metals often refer to themselves as “bullion.” Bullion refers only to the actual metal.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This means you'll receive dividends every year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, you pay only a small percentage tax on your gains. You can also access your funds whenever it suits you.
Which precious metals are best to invest in retirement?
It is gold and silver that are the best precious metal investment. They are both easy to trade and have been around for years. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: One of the oldest forms of currency, gold, is one of mankind's most valuable. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Silver has always been popular among investors. It's an ideal choice for those who prefer to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It's resistant to corrosion and durable, similar to gold and silver. It's however much more costly than any of its counterparts.
Rhodium: Rhodium is used in catalytic converters. It is also used as a jewelry material. And, it's relatively cheap compared to other types of precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also more accessible. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
