Microstrategy Now Holds 190,000 Bitcoins
Nasdaq-listed Microstrategy has significantly increased its cryptocurrency holdings, now owning a total of 190,000 bitcoins. This includes the acquisition of an additional 31,755 bitcoins since the end of the third quarter. With this development, Microstrategy proudly proclaims itself as the "world's first Bitcoin development company," offering a unique value proposition that sets it apart from spot bitcoin exchange-traded funds (ETFs). The company's commitment to the development of the Bitcoin network is demonstrated through its activities in the financial markets, advocacy, and technology innovation.
Microstrategy's Bitcoin Acquisition
Microstrategy Inc. (Nasdaq: MSTR) recently released its earnings report for Q4 2023, revealing its latest bitcoin acquisitions. Since the end of the third quarter, the company has purchased an additional 31,755 bitcoins, including 850 BTC acquired in January. Microstrategy's executive chairman, Michael Saylor, announced this update on the social media platform X, stating that the company now holds a total of 190,000 BTC.
As of December 31, 2023, the carrying value of Microstrategy's digital assets, which consists of approximately 189,150 bitcoins, amounted to $3.626 billion. This reflects cumulative impairment losses of $2.269 billion, as explained by the company.
Andrew Kang, Microstrategy's chief financial officer, commented on the recent bitcoin acquisitions, stating that they represent the largest quarterly increase in bitcoin holdings over the past three years. In fact, this marks the 13th consecutive quarter in which Microstrategy has added more bitcoin to its balance sheet. Kang also highlighted the company's benefit from the significant increase in bitcoin prices during Q4. Currently, Microstrategy holds 190,000 bitcoins with an aggregate purchase price of $31,224.
'The World’s First Bitcoin Development Company'
Microstrategy's Q4 earnings presentation emphasized its self-proclaimed title as the "world's first Bitcoin development company." The company believes that its value proposition is unique when compared to spot bitcoin exchange-traded funds (ETFs).
Microstrategy further explained its commitment to the development of the Bitcoin network, stating that as a publicly-traded operating company, it utilizes cashflows and proceeds from equity and debt financings to accumulate bitcoin. Bitcoin serves as the company's primary treasury reserve asset. Additionally, Microstrategy leverages its software development capabilities to create bitcoin applications and provide industry-leading AI-powered enterprise analytics software. The combination of its operating structure, bitcoin strategy, and focus on technology innovation positions Microstrategy for value creation.
What are your thoughts on Microstrategy's accumulation of 190,000 bitcoins and its claim as the world's first Bitcoin development company? Share your opinions in the comments section below.
Frequently Asked Questions
Can the government take your gold?
Your gold is yours and the government cannot take it. You earned it through hard work. It belongs to your. This rule could be broken by exceptions. Your gold could be taken away if your crime was fraud against federal government. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even if you don't pay your taxes, your gold can be kept as property of the United States Government.
Can I keep a Gold ETF in a Roth IRA
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
Traditional IRAs allow for contributions from both employees and employers. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
An Individual Retirement Annuity (IRA) is also available. An IRA allows for you to make regular income payments during your life. Contributions to IRAs can be made without tax.
How much are gold IRA fees?
The Individual Retirement Account (IRA), fee is $6 per monthly. This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
To diversify your portfolio you might need to pay additional charges. These fees can vary depending on which type of IRA account you choose. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
In addition, most providers charge annual management fees. These fees vary from 0% to 11%. The average rate is.25% annually. These rates can be waived if the broker is TD Ameritrade.
Is it a good retirement strategy to buy gold?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
Physical bullion is the most popular method of investing in gold. You can also invest in gold in other ways. It's best to thoroughly research all options before you make a decision.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. Owning gold stocks should work well if you need cash flow from your investment.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.
How does a Gold IRA account work?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can purchase gold bullion coins in physical form at any moment. You don’t have to wait to begin investing in gold.
You can keep gold in an IRA forever. You won't have to pay taxes on your gold investments when you die.
Your gold is passed to your heirs without capital gains tax. Your gold is not part of your estate and you don't have to include it in the final estate report.
To open a Gold IRA, you'll need to first set up an Individual Retirement Account (IRA). Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as a mediator between you, the IRS.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reports.
After you have established your gold IRA you will be able purchase gold bullion coin. The minimum deposit is $1,000. However, you'll receive a higher interest rate if you put in more.
You'll have to pay taxes if you take your gold out of your IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
However, if you only take out a small percentage, you may not have to pay taxes. However, there are exceptions. There are some exceptions. For instance, if you take out 30% or more from your total IRA assets, federal income taxes will apply plus a 20 percent penalty.
It's best not to take out more 50% of your total IRA investments each year. You could end up with severe financial consequences.
How is gold taxed within a Roth IRA
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
Each state has its own rules regarding these accounts. Maryland is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. You can delay until April 1st in Massachusetts. New York offers a waiting period of up to 70 1/2 years. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Lawful – WSJ
The best place to buy silver or gold online
Understanding how gold works is essential before you buy it. The precious metal gold is similar to platinum. It's very rare, and it is often used as money for its durability and resistance. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
There are two types today of gold coins. One is legal tender while the other is bullion. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coin are not intended for investment. However, their value will increase with inflation.
They cannot be used in currency exchanges. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. Each dollar spent by the buyer is worth 1 gram.
The next thing you should know when looking to buy gold is where to do it from. There are many options for buying gold directly from dealers. First, go to your local coin shop. You can also try going through a reputable website like eBay. You can also purchase gold through private online sellers.
Individuals who sell gold at wholesale and retail prices are called private sellers. Private sellers will charge you a 10% to 15% commission for every transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option is often a great one for investors in gold, as it gives you greater control over the item's value.
Another option for buying gold is to invest in physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
To purchase gold by yourself, you can visit a bank and a pawnshop. A bank can provide you with a loan to cover the amount you wish to invest in gold. Customers can borrow money from pawnshops to purchase items. Banks typically charge higher interest rates than pawn shops.
A third way to buy gold? Simply ask someone else! Selling gold is also easy. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
By: Kevin Helms
Title: Microstrategy Raises Bitcoin Holdings to 190K BTC — Calls Itself ‘World’s First Bitcoin Development Company'
Sourced From: news.bitcoin.com/microstrategy-raises-bitcoin-holdings-to-190k-btc-calls-itself-worlds-first-bitcoin-development-company/
Published Date: Thu, 08 Feb 2024 01:30:26 +0000