Bitcoin Surpasses $82,500 Following MicroStrategy’s 27,200 BTC Acquisition
On Monday, Microstrategy announced the acquisition of additional Bitcoin (BTC) as its price reached an all-time high of $82,500, with increased inflows into various sectors of the ecosystem over the past week.
MicroStrategy Now Holds Nearly $23 Billion In Bitcoin
In a social media post by Michael Saylor, the company revealed it acquired approximately 27,200 BTC for about $2.03 billion. This transaction aligns with Microstrategy's strategy to integrate cryptocurrency into its financial framework.
The acquisitions occurred between October 31 and November 10, funded by proceeds from recent stock sales. With this purchase, Microstrategy now holds nearly $23 billion in Bitcoin, totaling around 279,420 BTC at an average purchase price of about $42,692 per Bitcoin.
Saylor also noted that Microstrategy’s treasury operations since early November generated a BTC yield of 7.3%, benefiting shareholders by nearly 18,410 Bitcoin. Following the announcement, Microstrategy's stock (MSTR) rose 11% to approximately $299 per share, up from $270 the previous week.
Post-Election Bull Run
The rise in Bitcoin's price coincides with a shift in investor sentiment after Donald Trump's victory in the recent US presidential election against Vice President Kamala Harris. According to CoinShares, digital asset investment products saw inflows of $1.98 billion post-election, marking five consecutive weeks of positive inflows and a year-to-date total of $31.3 billion.
The overall global assets under management (AuM) in cryptocurrencies reached an all-time high of $116 billion. US investors contributed $1.95 billion, while European markets, especially Switzerland and Germany, experienced smaller inflows. Bitcoin attracted $1.8 billion of these inflows amid favorable conditions following the US Federal Reserve's interest rate cuts in September.
Susannah Streeter from Hargreaves Lansdown highlighted that the crypto market's bullish momentum is driven by euphoria surrounding Trump's election. His commitment to supporting cryptocurrency has been perceived as creating a more favorable regulatory environment, boosting investor confidence.
Citi strategists noted that cryptocurrencies remain one of the few Trump-related trades that have not retraced. Anticipated crypto-friendly policies from his administration could enhance regulatory clarity in the US, encouraging further investment.
As Bitcoin continues to rise, some predict it could reach $100,000 by year's end due to favorable market conditions and increasing institutional adoption.
Currently, Bitcoin is trading at $82,479, reflecting a 20% increase over the past week.
Featured image from DALL-E, chart from TradingView.com