MicroStrategy recently recorded $26 billion in Bitcoin holdings after its price surged to $90,000 last week. This valuation surpasses the cash reserves of major companies, including Nike and IBM.

Bitcoin’s Price Surge

Bitcoin, the largest cryptocurrency in the world, saw an 11% price increase, reaching $90,000 last week. This surge significantly boosted the value of MicroStrategy’s Bitcoin holdings, making it one of the biggest corporate holders of Bitcoin, with a valuation of up to $26 billion.

Comparison with Other Companies

MicroStrategy’s executive chairman, Michael Saylor, noted that their Bitcoin holdings now exceed the cash reserves of Nike Inc. and IBM Corp. In comparison, MicroStrategy’s Bitcoin holdings are on par with ExxonMobil’s treasury. Their Bitcoin reserve value is also just below Intel’s and General Motors’s treasuries, which are around $29 billion and $32 billion, respectively.

History of Bitcoin Acquisition

MicroStrategy began acquiring Bitcoin in 2020, becoming the first company to hold Bitcoin on its balance sheet. This move was later followed by numerous other companies, such as MetaPlanet and Tesla. As of now, MicroStrategy holds 279,420 Bitcoins, acquired through multiple purchases over the past four years. The company’s shares have surged by 2,100%, from $15 to $340, since their initial Bitcoin acquisition.

Future Bitcoin Acquisition Plans

MicroStrategy has an ambitious plan to acquire $42 billion worth of Bitcoin over the next three years. Under the 21/21 Plan, the company aims to invest $10 billion in 2025, $14 billion in 2026, and $18 billion in 2027. This plan involves exploring various financial options to secure additional funding, including $21 billion from equity and $21 billion from fixed-income securities. All funds will be exclusively allocated for acquiring more Bitcoin.

If successful, MicroStrategy is projected to own approximately 3% of the Bitcoin supply, equating to around 580,000 Bitcoins within the next three years.

Recent Acquisitions

In October 2024, MicroStrategy acquired 7,420 Bitcoins worth $458 million. The following month, the company purchased an additional 27,200 Bitcoins worth $2 billion.

Bitcoin Market Activity

Bitcoin, the world’s largest cryptocurrency by market capitalization, has seen a trading volume of around $43 billion in the past 24 hours.

Stay updated with the latest cryptocurrency news and trends on Global Crypto News.

#BullMarket #CryptoMarket #BitcoinPrice

Post Views: 0