MicroStrategy stock has soared since Monday after the company purchased another 12,000 Bitcoins for $821.7 million, the second-largest purchase by the software firm since it began buying the cryptocurrency almost four years ago. MicroStrategy shares were trading at $1,527 Tuesday morning, up more than 10% over the last 24 hours. The stock is up more than 120% so far in 2024.
Michael Saylor, MicroStrategy’s executive chairman, wrote on X that the company bought its latest Bitcoin collection for about $68,477 per coin. The move follows last week’s announcement that MicroStrategy was looking to raise $600 million for the purchase of more Bitcoins. After the latest purchase, MicroStrategy now holds 205,000 Bitcoins worth $14.7 billion.
Saylor believes Bitcoin will replace gold
Bitcoin is often treated by its proponents as digital gold, as it has a store of value. Saylor, a so-called Bitcoin maximalist who believes it will be the only digital currency needed in the future, said Monday that Bitcoin will soon replace gold because it possesses all of gold’s attributes without any of its flaws. He noted that Bitcoin can be transferred instantly anywhere in the world, which is not possible with gold.
Read more: Bitcoin is about to see a big ‘halving’ event. Here’s what that means and why it matters
Bitcoin is back in action
Bitcoin hit a new all-time high of $72,000 last week, breaking a long crypto winter. The rally came after the U.S. Securities and Exchange Commission approved 11 Bitcoin ETFs in January. The U.K. has also authorized some Bitcoin-linked securities.
The Bitcoin rally has lifted the stocks of other companies, too, including Coinbase and Marathon Digital Holdings.
Read more: The best bitcoin trade in February wasn’t bitcoin
