oinonen_t2023-08-12

MicroStrategy Heavily Ramping Up Its Bitcoin Accumulation

On August 1st, MicroStrategy's Michael Saylor announced an additional purchase of 467 bitcoins, increasing the company's assets under management to 152 800 units. MicroStrategy stated that it has used a total of 4,53 billion U.S. dollars to acquire the 152 800 bitcoins, at an average price of $29 672 per coin. With the current spot price at $29 479, MicroStrategy is operating on the brink of its bitcoin-based break-even. Throughout this year, MicroStrategy has accelerated its accumulation pace, acquiring a total of 20 300 units since January 1st. Compared to 2022 when the company added 8109 BTC to its balance sheet, the year-on-year growth by August 2023 has exceeded 150 percent. As MicroStrategy’s acquisitions gain momentum towards the end of the year, the growth over the previous year might amount to several hundred percent. Since the beginning of the year, the MSTR stock has surged by 161 percent, approximately doubling in relation to bitcoin. MicroStrategy has often been considered a leading indicator for bitcoin, acting as a technical magnet for BTCUSD. The intensification of the company’s accumulation pace also signals preparation for significant future events, including the projected halving of next April and the probable ETF decision(s) by the U.S. Securities and Exchange Commission (SEC). Both BTC and MSTR are reflexive asset classes, aligning with George Soros’s reflexivity theory. Soros’s theory addresses the impact of positive feedback loops on investor expectations and realities, where differences between the two can lead to price trends significantly deviating from equilibrium prices.