MicroStrategy Buys Bitcoin for $786 Million — What Will This Mean for Bitcoin Prices in 2024?
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NOIDA (CoinChapter.com) — MicroStrategy Inc. has once again attracted attention for its aggressive Bitcoin acquisition strategy. In its latest move, the company purchased 11,931 Bitcoins for approximately $786 million between April 27 and June 19 through the sale of convertible bonds.

This major acquisition marks MicroStrategy’s third-largest Bitcoin purchase to date (in dollar terms), although it is roughly the seventh-largest in terms of the number of Bitcoins purchased.

Bitcoin's Latest Acquisition Journey
MicroStrategy’s latest acquisition comes at a time when investors and analysts are paying extra attention to Bitcoin’s price action. Historically, MicroStrategy’s large Bitcoin purchases have had various effects on BTC prices.

For example, the acquisition of 21,454 Bitcoins on August 11, 2020, saw a slight price drop, but kicked off a long-term uptrend. The purchase of 29,646 Bitcoins on December 21, 2020, saw a significant price surge within a week, highlighting the positive market sentiment brought on by large-scale institutional buying.

More recent acquisitions, such as the 10,500 Bitcoin purchase on March 10, 2024, caused the Bitcoin price to rise from $72,025 to $74,150, but the subsequent rally failed to sustain as traders began to cash in profits.

Historical data shows that while MicroStrategy purchases can cause short-term volatility, they generally contribute to long-term bullish trends.

According to documents filed with the U.S. Securities and Exchange Commission, the company acquired 11,931 bitcoins at an average price of approximately $65,900. This purchase follows the purchase of 12,000 bitcoins for $821 million in March 2024.

MicroStrategy has spent more than $2.4 billion on Bitcoin since 2024, bringing its total holdings to 226,331 Bitcoins, worth approximately $14.9 billion. Despite spending a total of $8.3 billion, the company has made an impressive $80% in paper gains on its investment.

If Bitcoin chooses to repeat history, BTC price could see a bull run, potentially setting new all-time highs.

MicroStrategy's Market Share Outlook for Bitcoin
Michael Saylor, Chairman and Co-founder of MicroStrategy, has been a staunch supporter of Bitcoin as a strategic asset. Saylor began accumulating Bitcoin in 2020, viewing it as a superior alternative to fighting inflation and holding cash.

Since then, Bitcoin has risen by about 6,00%, showing the effectiveness of his strategy. Saylor’s conviction remains strong and he continues to pursue acquisitions through various financial mechanisms, including convertible bonds.

MicroStrategy's strategy of using debt to fund Bitcoin acquisitions indicates a long-term bullish outlook on the cryptocurrency. Significant paper gains support this view, while indicators show that the market generally agrees with MicroStrategy's bullish view on BTC prices.

Bitcoin futures positions
The increasing open interest in Bitcoin futures is correlated with rising BTC prices. This trend indicates that investors are becoming more confident in Bitcoin futures and more funds are flowing in, which is usually a precursor to rising prices.

Bitcoin Position Weighted Funding Rate
Despite the short-term volatility, the position-weighted funding rate remains positive. A positive value indicates that traders are betting more on price increases, indicating that most positions expect prices to rise.

The continued positive sentiment among traders shows strong confidence in Bitcoin’s future performance.

The potential for further price gains is highlighted by rising open interest and positive position-weighted indicators. These indicators reflect traders’ and investors’ optimism about Bitcoin’s continued growth and upward momentum.