Bitcoin is now $100,000!
Before and after Trump was elected as the US President, Bitcoin rose from $60,000 to $100,000 in just a few days. This was driven by the Bitcoin ETF funds. From the data, it can be seen that ETFs have significantly increased their purchasing power before and after Trump's election.
However, analysts at StarEx Exchange believe that it is another listed company MicroStrategy that has helped BTC break through historical highs. According to the latest financial report, it recently spent $4.6 billion to buy 51,780 BTC at an average price of $88,600, which is more than the total amount of ETFs recently bought. Currently, the number of bitcoins held by this listed company has exceeded 330,000, second only to BlackRock's ETF product (holding about 470,000).
MicroStrategy is a well-known business intelligence software company founded in 1989, but its main business is obviously not the focus. The point is that it has been using cash to buy Bitcoin as its main reserve asset since August 2020. In the mid-2020 earnings call, MicroStrategy first disclosed its Bitcoin investment plan, when the company said it would invest $250 million in "one or more alternative assets" over the next 12 months, which may include crypto assets such as Bitcoin. The company's market value was about $1.1 billion at the time, and today its market value has reached $100 billion.
In recent years, MicroStrategy has continued to raise funds to purchase Bitcoin by issuing bonds, which not only increases the attractiveness of its stocks, but also as a listed company, it does not charge management fees compared to Bitcoin ETFs.
MicroStrategy Bitcoin Investment History:
August 2020: An initial investment of approximately US$250 million was made to purchase 21,454 BTC at an average price of US$11,654.
September 2020: An additional $175 million was spent to purchase 16,796 BTC at an average price of $10,422.
December 2020: Increased investment by approximately US$650 million through the issuance of convertible bonds, purchasing 29,646 BTC at an average price of US$22,000.
June 2021: Purchased 13,005 BTC for $489 million, with an average price of $37,617.
November-December 2022: Purchased 2,395 BTC at an average price of $17,871, and sold 704 BTC at an average price of $17,800 in December.
March to July 2023: 6,455 BTC were purchased from March 27 to April 5 at an average price of $28,016; 12,333 BTC were purchased from April to June at an average price of $28,136; 467 BTC were increased in July at an average price of $30,835.
February 2024: 3,000 BTC purchased from the 15th to the 25th at an average price of $51,813.
March 2024: 12,000 BTC purchased for $821 million, at an average price of $68,400.
On November 16, 2024, MSTR announced that it had acquired 51,780 bitcoins for approximately $4.6 billion.
More and more listed companies, asset management companies, sovereign funds, and even governments around the world are starting to hoard BTC as strategic reserves like MicroStrategy, which has undoubtedly increased the demand for BTC. This has caused the supply in the trading market to hit a record low. The supply and demand balance in the Bitcoin market is being broken. At present, the number of whales holding Bitcoin for a long time has reached nearly 80%, and the number of Bitcoins in circulation has hit a record low. This supply-side tightening effect has become the core driving force for price increases.
StarEx Exchange analysts believe that the core logic of this round of Bitcoin bull market can be summarized as: institutional dominance, surging demand, and capital tightening. From the inflow of funds from ETFs to the super whale effect of MicroStrategy, the power of institutional investors has become the dominant force in the Bitcoin market. This has not only changed the dominant force in the Bitcoin bull market, but also established Bitcoin's position as a global strategic reserve asset.
As more institutions join the battle, the market demand for Bitcoin will further expand, and its scarcity and anti-inflation characteristics will attract more capital to enter the market to compensate. This loss of supply and demand will continue to push up the price of Bitcoin, further opening a longer bull market cycle.
