BTC Price Outlook Strengthens as Strategy Buys $1.3 Billion Worth of Bitcoin

• Michael Saylor’s MicroStrategy has made an additional purchase of 13,390 BTC at an average price of $99,956 amidst the current bullish momentum. 
• Several crypto investors have raised concerns that MicroStrategy’s buying spree could undermine the core decentralisation of the asset; however, an expert offers a solution. 

Business Intelligence firm MicroStrategy has expanded its Bitcoin holdings after purchasing an additional 13,390 BTC for $1.34 billion at an average price of $99,956. According to the document shared on X, this brings the company’s total Bitcoin holdings to 568,840 BTC acquired for an aggregate price of $39.41 billion and at an average price of $69,287.

Comparatively, the value of its holding appears higher than the Gross Domestic Product (GDP) of countries, including Mozambique. Basically, a Year-To-Date Yield of 15.5% has been achieved on its Bitcoin holdings, with more expected to be recorded amidst the rising market momentum.

Reviewing its filing with the US Securities and Exchange Commission (SEC), we found that MicroStrategy funded its Bitcoin purchase from the sales of its Common ATM and STRK ATM. According to the document, $1.31 billion was raised from the sales of 3.2 million MSTR Shares, while $25.1 million was also raised from the sales of 273,987 STRK Shares.

As recently indicated in our news brief, the company plans to raise $84 billion for Bitcoin purchases by doubling its capital strategy and achieving a 25% yield on its Bitcoin this year.

While this underscores the company’s confidence in the asset class, it also hints at the fast adoption pace of Bitcoin among institutions, with 80 publicly traded companies currently holding Bitcoin on their balance sheets. Recently, Japanese firm Metaplanet also made its largest ever purchase by adding a whopping amount of $125 million to its holdings.

MicroStrategy’s Bitcoin Acquisition Concerns

MicroStrategy’s consistent and significant acquisition of Bitcoin has recently raised centralisation concerns as investors fear a future manipulation of the price. Last year, for instance, the world’s greatest Angel Investor, Jason Calacanis, warned that the decision to hold too much of the asset by a single entity could undermine and compromise its core principle of decentralisation.

You break the game of bitcoin if any one individual owns too much — I’m guessing that number is like 10% If MSTR acquires too much, everyone will rightfully think they’re working for Saylor, resent him deeply and move on to another more fair “game”…You break the game of Bitcoin if any one individual owns too much—I’m guessing that number is like 10%.

To counter this concern, Casa co-founder Jameson Lopp has advised that more companies should follow the lead by accumulating more of the asset. Meanwhile, Fundstrat’s Tom Lee believes that the ongoing development implies that Bitcoin could become the basis of how companies manage their treasures.

At press time, Bitcoin was trading at $103k after surging by 10.5% in the last seven days.

As recently highlighted in our news brief, an analyst has predicted that Bitcoin could peak at $250k this year. Similarly, another analyst identified as Timothy Peterson has hinted that the price could hit $126k by June, as also mentioned in our previous coverage.