MicroStrategy Allocates Another $14 Million to Bitcoin Amid Surging BTC Whale Activity
MicroStrategy purchased an additional 169 BTC in July, valued at around $11.4 million, bringing the firm’s total Bitcoin holdings to 226,500 BTC.
MicroStrategy is the largest corporate holder of Bitcoin, with its total stash valued at over $14 billion at the current Bitcoin price. The firm has purchased Bitcoin at an average price of $36,821 per BTC.
Its July purchase came as BTC witnessed high volatility during the month, with the price plunging to multi-month lows of below $54K on July 5 before recovering to nearly $70,000 on July 29.
Bitcoin was trading at $64,415 at the time of writing after a slight 0.1% gain in 24 hours.
MicroStrategy’s Bitcoin Plan
In its Q2 2024 earnings result, MicroStrategy revealed it bought 12,222 BTC during the quarter at an average price of $65,882. The firm revealed that it remained focused on its Bitcoin development strategy.
In July, @MicroStrategy acquired an additional 169 BTC for $11.4 million and now holds 226,500 BTC. Please join us at 5pm ET as we discuss our Q2 2024 financial results, the outlook for $BTC, and our #Bitcoin development strategy. $MSTRhttps://t.co/cfGPc42jfM
— Michael Saylor(@saylor) August 1, 2024
MicroStrategy also announced a new key performance index (KPI) known as the Bitcoin Yield, which measures the performance of its strategy to acquire Bitcoin. In Q2, the firm recorded a Bitcoin Yield of 12.2%, and it is now targeting a 4-8% BTC yield in the next three years.
“After yet another successful quarter for our bitcoin strategy, MicroStrategy today holds 226,500 Bitcoins, reflecting a current market value 70% higher than our cost basis. We remain laser-focused on our Bitcoin development strategy and intend to continue to achieve positive “BTC Yield,” the firm said.
MicroStrategy also announced its plans to file a registration statement for an at-the-market equity offering program to raise $2 billion. However, it failed to mention the purpose of the funds, but as ZyCrypto reported, the firm has previously used such capital raises to grow its Bitcoin stash.
More Whales Are Buying Bitcoin
MicroStrategy is not the only Bitcoin whale expanding its Bitcoin footprint. In the last few hours, a whale allocated $7.39 million to purchase 113 Bitcoin. Another large wallet address also moved 1,500 BTC from Bitfinex to a new wallet.
According to a recent analysis by CryptoQuant, wallets holding between 1K and 10K BTC have accumulated Bitcoin significantly in 2024. The trend points towards large investors’ growing confidence in Bitcoin.
An accumulation by these large addresses is a positive indicator of price action and could contribute to further price gains.
