Recently, the renowned company MicroStrategy has purchased an additional 16,130 Bitcoin at a price of 593 million dollars, further intensifying its position in the most prestigious cryptocurrency of all. Let’s see all the details below.
MicroStrategy’s strategy: consolidation and growth in the Bitcoin ecosystem
As anticipated, MicroStrategy, a leading company in the field of business intelligence and software, has continued its constant commitment towards Bitcoin.
Specifically, announcing the purchase of an additional 16,130 BTC at a total cost of 593.3 million dollars, as stated today by the founder and chairman Michael Saylor.
The operation took place simultaneously with a rise in the prices of Bitcoin, which recently reached a yearly high above $38,300.
We remind you that the company entered the Bitcoin market in August 2020 with a significant initial investment of $250 million in BTC.
Since then, it has consistently increased its Bitcoin reserves, implementing a treasury strategy that has accumulated over 174,530 Bitcoin, with a value of over $6.59 billion at the time of writing.
In particular, MicroStrategy has announced that it has acquired approximately 16,130 bitcoins for approximately $593.3 million in cash, during the period between November 1st and November 29th, 2023.
The average purchase price is around $36,785 per Bitcoin, considering fees and expenses.
As of November 29, 2023, the company holds a total of approximately 174,530 bitcoins, acquired at an aggregate price of approximately $5.28 billion and an average price of approximately $30,252 per bitcoin, including fees and expenses.
Of relevance is the fact that, with the imminent arrival of Bitcoin’s fourth halving and the possible approval in the near future of the first Bitcoin spot ETF by the SEC, MicroStrategy is continuing its aggressive investment strategy in Bitcoin, showing no signs of slowing down.
Bitfinex: the growth potential of Bitcoin supported by the prospects of the FED
Despite Bitcoin surpassing $38,000 multiple times in November, maintaining this level has been problematic.
However, analysts at Bitfinex express optimism in their latest evaluations, suggesting the possibility of an increase in capital flows towards Bitcoin in the short term.
According to The Block, Bitfinex analysts base their positive opinions on the high probability that the Federal Reserve (FED) will keep interest rates unchanged in December, highlighting the recent accommodating statements by Christopher Waller, a member of the FED.
Specifically, analysts state the following:
“If the American Federal Reserve decides to keep interest rates unchanged at the meeting on December 13, we could see a significant increase in capital flows towards Bitcoin.”
Therefore, the expectations for interest rates in December, combined with Waller’s recent moderately optimistic statements, contribute to strengthening confidence in Bitcoin and cryptocurrencies.
Christopher Waller has also expressed confidence in the robustness of the current monetary policy, suggesting that it is well positioned to mitigate economic pressures and bring inflation back to 2%.
However, he also warned that if inflation persists, there could be interest rate cuts in 2024.
Thus, even Bitfinex analysts emphasize the importance of uncertainty regarding the continuation of inflation slowdown.
In particular, stating that, although maintaining interest rates may trigger a temporary increase in the prices of Bitcoin and altcoins, the long-term direction will depend on various economic factors and the overall impact of monetary policy.
The same analysts predict possible interest rate cuts starting from May 2024.
The SEC’s statements regarding the rigorous evaluation process for Bitcoin ETFs
During a recent conference, Gary Gensler, chairman of the SEC, avoided revealing specific details regarding the ongoing decision-making process for spot Bitcoin ETFs, currently under review.
He emphasized the meticulous and consolidated approach of the agency in evaluating such requests, comparing the process to that of initial public offerings (IPOs).
Gensler has provided a thorough description of the rigorous procedure for SEC submission and response, coordinated by the Division of Corporate Finance and the Division of Trading and Markets.
In particular, he stated that this practice has been a cornerstone of the SEC regulatory framework for several decades, ensuring a thorough examination of potential issuers.
The ongoing negotiations between the SEC and companies like Invesco and BlackRock indicate an active involvement in addressing concerns related to ETFs, with particular attention to financial impacts and associated risks.
Not by chance, Gensler’s statements followed such meetings, which also involved interactions with Grayscale.
In his speech, Gensler reiterated his view of Bitcoin as a commodity and expressed concern for the cryptocurrency sector as a whole, citing the risks associated with fraud and manipulation.
He has also supported the idea of delegating greater regulatory authority to the Commodity Futures Trading Commission (CFTC) to oversee Bitcoin-related activities.
