MicroStrategy Temporarily Halts Bitcoin Purchases
Date: 2025-02-04 Author: Gabriel Deangelo Categories: BUSINESS
This was the first break in the company's active accumulation of the cryptocurrency in three months, during which it invested more than $20 billion in digital assets.
The pause in purchases may indicate a strategy adjustment in the face of market fluctuations. Saylor previously stated that MicroStrategy would focus on issuing fixed-income bonds in the first quarter of this year, which may explain the temporary refusal to purchase new Bitcoin.
The company currently owns 471,107 BTC worth about $47 billion. Since 2020, $30.4 billion has been spent on their purchase, and the average purchase price was $64,511 per coin. Thanks to the growth of the Bitcoin price, the company's unrealized gains from its crypto assets increased by more than $17 billion.
In addition, in December 2024, MicroStrategy entered the top 100 non-financial companies listed on Nasdaq, and also became the owner of 2% of the world's total Bitcoin supply. This success was achieved thanks to an aggressive investment strategy, which previously brought the company significant profits.
However, given the current volatility in the crypto market, the decision to pause purchases may indicate a more cautious approach to further investing. Amid uncertainty in the global economy and instability in the crypto markets, MicroStrategy may be reconsidering its long-term plans and focusing on more stable financial instruments.
Thus, although the company continues to be one of the largest players in the cryptocurrency market, its current strategy may become less aggressive, which will help reduce risks and adapt to changes in the market.
