MicroStrategy Plans New Bitcoin Purchase as BTC Consolidates Around $101K, Surpassing U.S. Holdings

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MicroStrategy Plans New Bitcoin Purchase as BTC Consolidates Around $101K, Surpassing U.S. Holdings

crypto :: 1day ago :: source - coinmarketcap

By Ayesha Aziz

MicroStrategy co-founder Michael Saylor has hinted at another Bitcoin purchase scheduled for Jan. 27, following the company’s recent acquisition of 11,000 BTC on Jan. 21 at an average price of $101,191 per coin. This brings MicroStrategy's total holdings to 461,000 BTC, worth approximately $48.4 billion, surpassing the U.S. government’s Bitcoin holdings. Despite Bitcoin’s recent pullback from an all-time high of $108,786 on Jan. 20, the cryptocurrency has been consolidating around $101,000.

The announcement coincides with a significant development in U.S. digital asset policy. On Jan. 23, President Trump signed an executive order creating the President's Working Group on Digital Asset Markets. Chaired by David Sacks, the group is tasked with researching the creation of a "national digital asset stockpile." However, Bitcoin’s role in this stockpile remains unclear, as the order did not explicitly mention the cryptocurrency.

The executive order has sparked mixed reactions from the Bitcoin community. Max Keiser, a prominent Bitcoin evangelist, criticized the potential inclusion of altcoins in a U.S. digital asset reserve, calling it destructive to Bitcoin’s dominance. Meanwhile, Pierre Rochard, VP of research at Riot Platforms, warned that Ripple's lobbying efforts could prevent Bitcoin from being the sole asset in a strategic reserve, instead promoting a more diverse collection of digital assets. Ripple CEO Brad Garlinghouse acknowledged the company's lobbying efforts but assured that Bitcoin would still be part of any future reserve.

While MicroStrategy’s Bitcoin investments have been profitable, with an unrealized gain of over $19 billion, traders are uncertain about the short-term outlook for Bitcoin. The potential shift toward a multi-asset digital asset reserve has left the market apprehensive, as the policy could include inflationary assets alongside Bitcoin. Despite this uncertainty, Saylor remains committed to growing MicroStrategy’s Bitcoin holdings, signaling further acquisitions in the coming days.

Bitcoin's price action has been volatile in recent weeks, but MicroStrategy’s continued investments demonstrate the company's confidence in the long-term potential of the cryptocurrency. However, the debate surrounding the U.S. digital asset reserve and its potential to include altcoins could have significant implications for Bitcoin's future role in the global financial system.

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