MicroStrategy Continues Bitcoin Accumulation, Purchasing 1,895 BTC for $180.3M

Strategy, the business intelligence firm formerly known as MicroStrategy, has continued its aggressive Bitcoin accumulation. On May 5, Executive Chairman Michael Saylor announced that the company purchased 1,895 additional BTC for $180.3 million in cash, bringing its total holdings to 555450 bitcoins.

Strategy, the business intelligence firm, has continued its relentless Bitcoin accumulation, adding 1,895 BTC for $180.3 million in cash, bringing its total holdings to 555,450 bitcoins as of May 5, according to a recent filing with the U.S. Securities and Exchange Commission.

The coins were mined at an average price of $95,010 per bitcoin. Strategy’s full Bitcoin treasury is now valued at more than $52 billion, cementing its place as the largest recognized corporate holder of Bitcoin in the world.

The firm’s latest purchase is part of its broader strategy to allocate capital to Bitcoin as a primary treasury reserve asset, which the company believes is a digital property superior to gold. Strategy has been raising capital through convertible notes and share sales to fund its BTC purchases.

The firm began its buying spree in August 2020 with an initial investment of $425 million in Bitcoin. Since then, it has become a key part of Strategy’s identity and a major focus for the company’s executives and investors.

“We’re not slowing down. #Bitcoin is the future,” Saylor posted on X, formerly Twitter.

> We’re not slowing down. #Bitcoin is the future. https://t.go/P8OmI

The post Strategy Buys More Bitcoin As Many Analysts Remain Optimistic On BTC Price appeared first on Benzinga.

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As Bitcoin price today hovers around $94,170, reflecting a modest pullback from recent highs above $97,000, many analysts remain optimistic, setting price targets as high as $200,000 for the cryptocurrency in the coming months.

Among them, Bitcoin bulls at Glassnode and Chainlysis are setting the stage for further gains, particularly if the institutional demand continues to outpace the supply.

"Bitcoin's price rise in 2024 has been nothing short of phenomenal, with a staggering 120% gain year-to-date," remarked the analysts at Glassnode in a recent report.

"This surge can be attributed to several key factors, including the massive inflow of institutional capital, evident in the substantial increase in on-exchange Bitcoin supply held by institutions."

"Moreover, the launch of Bitcoin ETFs in the U.S. has sparked tremendous interest and participation from retail investors, further propelling the cryptocurrency to new heights."

"The narrative surrounding Bitcoin as 'digital gold' has gained momentum, positioning Bitcoin as a superior hedge against inflation and economic uncertainty, thus attracting investors seeking a store of value in a turbulent market."

Their analysis highlights the significant change in on-exchange Bitcoin supply held by institutions, which has risen to 350,000 BTC, a substantial increase from the previous year.

In contrast, the amount of Bitcoin held by liquid institutions, such as exchanges and institutions, has remained relatively stable over the past year, ranging from 1.1 to 1.3 million BTC.

In essence, this shift in on-exchange Bitcoin supply can be attributed to the increased involvement of institutions in the cryptocurrency market.

"The implication is clear: in a limited supply market, persistent institutional demand will outpace the supply, ultimately leading to price appreciation," the analysts explained.

"This dynamic is crucial in understanding the price movements of Bitcoin, which is characterized by low liquidity and high price volatility, rendering it susceptible to rapid and substantial price changes in response to shifts in institutional demand."

In the same vein, Chainlysis points out that while Bitcoin's fundamentals remain strong, setting the stage for further gains, several factors could hinder the cryptocurrency's upward trajectory.

"Despite Bitcoin's impressive run-up in 2024, setting the stage for a potential continuation of the bull market, certain factors could impede Bitcoin's ascent and set the stage for a correction," said the analysts at Chainlysis.

"While Bitcoin's fundamentals remain strong, with low inflation and a robust ecosystem, several technical indicators suggest that Bitcoin could be due for a correction."

"Specifically, an RSI reading above 70 is often used to indicate that a security is overbought and could be poised for a pullback."

"Furthermore, Bitcoin's recent price gains have been rapid and substantial, setting the stage for a potential reversal as traders take profits and the market becomes saturated with leveraged long positions."

Their analysis underscores that Bitcoin's price gains have been swift and significant, increasing by over 110% since the start of the year.

"This rally has been fueled by several factors, including the launch of Bitcoin ETFs, which has brought in a wave of new investors."

"The token has also seen strong demand from institutions, which are increasingly using Bitcoin as a part of their treasury holdings."

"While Bitcoin's fundamentals remain strong, with low