Nasdaq-listed company Microstrategy has made another significant acquisition of bitcoin, purchasing an additional 14,620 BTC for approximately $615.7 million. This latest purchase has raised Microstrategy's total holdings of the cryptocurrency to 189,150 BTC, which were acquired at an average price of $31,168 per coin, amounting to around $5.9 billion. The executive chairman of Microstrategy, Michael Saylor, believes that spot bitcoin exchange-traded funds (ETFs) could potentially be the most significant development on Wall Street in the past three decades.
Microstrategy Now Holds 189,150 Bitcoin
On Wednesday, software intelligence firm Microstrategy (Nasdaq: MSTR) announced its recent acquisition of more bitcoin. The executive chairman, Michael Saylor, took to social media platform X to disclose the details:
"Microstrategy has acquired an additional 14,620 BTC for approximately $615.7 million, with an average price of $42,110 per bitcoin. As of December 26, 2023, Microstrategy now holds a total of 189,150 BTC, acquired for approximately $5.9 billion, at an average price of $31,168 per bitcoin."
According to Microstrategy's filing with the U.S. Securities and Exchange Commission (SEC), these additional coins were acquired between November 30 and December 26.
Saylor also shared on December 17 that since his company adopted the bitcoin strategy on August 10, 2020, the price of BTC has surged by 253%. In comparison, the S&P 500 has seen a modest increase of 40%, and the Nasdaq has risen by 35%. Notably, gold's price has remained stagnant during this period, while silver experienced a decline of 14%, and bonds plummeted by 18%.
The executive chairman of Microstrategy has previously explained that the company's bitcoin strategy aims to maximize long-term value for its shareholders. He views BTC as a reliable store of value and an attractive investment asset with greater long-term appreciation potential than holding cash.
In addition, Saylor recently stated that Bitcoin represents the digital transformation of capital and that more people are realizing that they are underallocated in this asset. He further mentioned that spot bitcoin exchange-traded funds (ETFs) could potentially be the most significant development on Wall Street in the past 30 years. Currently, the SEC is evaluating 13 spot bitcoin ETF applications, and the market anticipates the approval of multiple ETFs by January 10.
What are your thoughts on Microstrategy's continued bitcoin acquisitions, resulting in a total holding of 189,150 BTC? Let us know in the comments section below.
Frequently Asked Questions
What is the best way to hold physical gold?
Gold is money. Not just paper currency. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Many Americans now invest in precious metals. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
One reason is that gold historically performs better than other assets during financial panics. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. During those turbulent market conditions, gold was among the few assets that outperformed stocks.
Gold is one of the few assets that has virtually no counterparty risks. If your stock portfolio goes down, you still own your shares. Gold can be worth more than its investment in a company that defaults on its obligations.
Gold provides liquidity. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you to take advantage of short-term fluctuations in the gold market.
What are some of the benefits of a gold IRA
The best way to save money for retirement is to place it in an Individual Retirement Account. It's not subject to tax until you withdraw it. You are in complete control of how much you take out each fiscal year. There are many types to choose from when it comes to IRAs. Some are better suited for people who want to save for college expenses. Others are intended for investors seeking higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. But once they start withdrawing funds, those earnings aren't taxed again. So if you're planning to retire early, this type of account may make sense.
The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. This eliminates the need to constantly make deposits. To ensure that you never miss a payment, you could set up direct debits.
Gold is one of today's most safest investments. Because it's not tied to any particular country, its value tends to remain steady. Even in economic turmoil, gold prices tends to remain relatively stable. Gold is a good option for protecting your savings from inflation.
Who owns the gold in a Gold IRA?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
You will need to declare the value of gold if you intend on selling it one day. This could impact how capital gains taxes you owe for cash investments.
To find out what options you have, consult an accountant or financial planner.
How is gold taxed within an IRA?
The tax on the sale of gold is based on its fair market value when sold. You don't have tax to pay when you buy or sell gold. It is not income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.
Gold can be used as collateral for loans. Lenders seek to get the best return when you borrow against your assets. In the case of gold, this usually means selling it. There's no guarantee that the lender will do this. They might keep it. They might decide to sell it. The bottom line is that you could lose potential profit in any case.
To avoid losing money, only lend against gold if you intend to use it for collateral. You should leave it alone if you don't intend to lend against it.
What is the tax on gold in Roth IRAs?
The tax on an investment account is based on its current value, not what you originally paid. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
You don't pay tax if you have the money in a traditional IRA/401k. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
The rules that govern these accounts differ from one state to the next. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. Massachusetts allows you up to April 1st. New York is open until 70 1/2. To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
How much gold do you need in your portfolio?
The amount of money you need to make depends on how much capital you are looking for. A small investment of $5k-10k would be a great option if you are looking to start small. As you grow, you can move into an office and rent out desks. So you don't have all the hassle of paying rent. Rent is only paid per month.
You also need to consider what type of business you will run. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. This means that you may only be paid once every six months.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I suggest starting with $1k-2k gold and building from there.
Is gold a good investment IRA option?
If you are looking for a way to save money, gold is a great investment. It's also a great way to diversify your portfolio. But gold is not all that it seems.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It's often referred to as “the world's oldest currency.”
But unlike paper currencies, which governments create, gold is mined out of the earth. That makes it very valuable because it's rare and hard to create.
The supply-demand relationship determines the gold price. The economy that is strong tends to be more affluent, which means there are less gold miners. Gold's value rises as a result.
On the other hand, people will save cash when the economy slows and not spend it. This causes more gold to be produced, which lowers its value.
This is why investing in gold makes sense for individuals and businesses. If you invest in gold, you'll benefit whenever the economy grows.
In addition to earning interest on your investments, this will allow you to grow your wealth. In addition, you won’t lose any money if gold falls in value.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)