MicroStrategy Purchases More Bitcoins Amid Predictions of Bitcoin ETFs Surpassing Gold
Summary:
MicroStrategy has bought an additional 3,000 Bitcoins at an average price of $51,813, taking its total holdings to 193,000 Bitcoins. The purchase happened during a time when MicroStrategy's account was compromised and then used for fraudulent activities. Meanwhile, experts predict a surge in Bitcoin exchange-traded funds (ETFs) potentially overtaking gold ETFs in assets under management over the next couple of years. MicroStrategy's CEO, Michael Saylor, announced his intention to continuously purchase Bitcoin, emphasizing its technical superiority over other assets such as gold and real estate.
MicroStrategy, led by Michael Saylor, has added to its cache purchasing a fresh 3,000 Bitcoins, which cost them around $155 million - averaging at $51,813 per Bitcoin, from Feb. 15 to Feb. 25. This now increases the total number of Bitcoins owned by the company to 193,000; this acquisition cost MicroStrategy approximately $6.09 billion, purchased at an average rate of $31,544 per Bitcoin, as per a February 26 post by Saylor, who founded and chairs MicroStrategy - the leading Bitcoin holder among all publicly listed companies.
This announcement came just as MicroStrategy’s official account was compromised. The culprit publicized several harmful links to fictitious token giveaways, with the intention to illegally acquire user funds. This fake announcement resulted in the loss of over $440,000, says ZachXBT, an anonymous online chain investigator. The latest assimilation of Bitcoins by MicroStrategy is also a response to reassuring forecasts by Bloomberg's top experts who predict a potential surge in Bitcoin ETFs, surpassing gold ETFs in terms of assets under management (AUM), over the next couple of years.
A February 26 analysis report, by Eric Balchunas, a senior analyst at Bloomberg, and Andre Yapp, associate analyst, suggests greater competition for precious metals, with the advent of successful Bitcoin ETFs. According to Farside Investors data, the 10 spot Bitcoin ETFs in the US have collectively accrued 5,500 Bitcoins since their inception on January 11.
While Bitcoin ETFs have been around for roughly six weeks, they've attracted over $8 billion more than their gold counterparts, already owning 40% as much in assets and potentially surpassing them in size in under two years. With Bitcoin ETFs gaining over $5 billion in net assets since their inception, gold ETFs could struggle to maintain their $90 billion in assets because of gold’s price performance - a drop of 0.01% over the last 24 hours to $2,033 per ounce, as per Goldprice data, as observed by Balchunas and Yapp in their report.
On February 20, Saylor from MicroStrategy announced that he intended to persist with his Bitcoin purchases indefinitely, asserting that he has no intention of selling the asset, stating that it technically outperforms gold, real estate, and the S&P 500. Evidently, Bitcoin was down by 0.67% within the last 24 hours, trading at $51,314, as per CoinMarketCap data. Worth noting is that Bitcoin ETFs account for roughly 75% of all new investments, so says CryptoQuant.
Published At
2/26/2024 5:03:10 PM
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