MicroStrategy has made another huge move into Bitcoin, this time buying up $175 million worth of the leading cryptocurrency.
MicroStrategy founder and CEO, Michael Saylor announced on Twitter little over an hour ago that the software firm had ‘completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million.’
This comes on the back of the company’s first purchase of 21,454 bitcoins at an aggregate price of $250 million at the end of July.
The two Bitcoin purchases make up a total of 38,250 bitcoins at a price of $425 million, inclusive of fees and expenses.
This Is So Bullish For Bitcoin It Can’t Be Overstated
This second major move by MicroStrategy is so bullish for Bitcoin it can’t be overstated. The fact that a public company has spent $425 million buying Bitcoins is nothing short of incredible.
The announcement led popular Bitcoin and macro investor Pomp to tweet: ‘Michael Saylor is publicly conducting one of the greatest trades in history. This is incredible to watch.’
It’s certainly the boldest move in living memory by the CEO of a public company, and will likely have a dramatic effect, making the relatively small public company a major player.
Cryptocurrency portfolio app, Blockfolio also commented on Saylor’s announcement, expressing the fact ‘Less than 550 companies can own as much bitcoin as MicroStrategy.’
Institutional Money Not a Surprise But The Size of The Purchase is Staggering
The move into Bitcoin by a public company comes as no surprise to most Bitcoiners.
But arguably the most exciting thing about this is that MicroStartegy has the likes of BlackRock, Vanguard and JP Morgan heavily invested.
Those three behemoths have over $15 trillion AUM between them, and as they and the rest of the legacy world witness MicroStrategy’s growth in the coming years, the speed at which institutional money comes into the space will be phenomenal.
PlanB calls it Phase 5 in his Stock-to-Flow model (S2F). Phase 5 is the adoption of Bitcoin, in which large amounts of institutional and even government money start cascading into Bitcoin.
And at the peak of the bull cycle, if Phase 5 plays out as expected, we can expect to see a Bitcoin price of $288k according to the S2F model.
An unbelievable amount indeed, and of course models are there to fail eventually, but many seasoned investors have dissected the S2F model and some even say $288k is a conservative estimate.
Michael Saylor’s Bold Move Will Go Down In History
In little over a month, Michael Saylor has made two of the boldest moves in living memory.
Every Bitcoiner expected institutions to start trickling into Bitcoin, but a move of $425 million and almost 50% of a company’s balance sheet is mind blowing.
This cannot be overstated. A public company buying 38,250 bitcoins will reverberate around Wall Street so loudly the FOMO from it could cause the biggest bull market in history.
Strap in, stack sats, and enjoy the ride.
Author: Tommy Limpitlaw
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