Key Points
- CEO of MicroStrategy, Michael Saylor, continues to promote Bitcoin as a solution to economic issues.
- MicroStrategy accumulated over 12,000 BTC in Q2 of 2024, potentially impacting its share price.
Michael Saylor, the head of MicroStrategy, remains a strong advocate for Bitcoin. His recent comment on a social media platform referred to Bitcoin as the solution to economic problems.
Bitcoin: The Economic Cure
The term “orange pill,” used to describe Bitcoin within the cryptocurrency community, was used by Saylor to suggest that Bitcoin is an effective hedge against economic issues such as inflation.
Saylor has been vocal about his belief in the cryptocurrency, predicting that Bitcoin could reach a value of $10 million per coin due to its ability to withstand time and inflation.
MicroStrategy’s Bitcoin Acquisition
In the second quarter of 2024, MicroStrategy acquired Bitcoin twice during retracement periods and through debt strategies.
The company purchased 11,931 Bitcoin in June at an average price of $65.8k. In April, it acquired an additional 122 Bitcoin, bringing its total holdings to 226,331 Bitcoin, valued at approximately $13.9 billion based on current market prices.
The amount of Bitcoin per share of MicroStrategy, calculated with the total shares standing at 17.7 million, was 0.01276 Bitcoin. This highlights the correlation between MicroStrategy and Bitcoin, suggesting that a new 2x leverage could increase its price in the future.
A new 2x leveraged MicroStrategy ETF is set to launch in the United States, which Bloomberg ETF’s Senior Analyst Eric Balchunas suggests could be 20x more volatile than the S&P 500 Index.
At the time of writing, MicroStrategy’s share price has risen above $1500, a 2% increase from its $1300 lows seen during the trading session on Monday (24 June).
Market analyst Bitcoin Munger suggests that MicroStrategy could reach $5k in the near future based on its current market structure.
However, Bitcoin’s price volatility could impact MicroStrategy’s short-term future. Despite this, Bitcoin has been consolidating in the range-lows of $60k recently amidst negative market sentiment, even with the upcoming launch of the Ethereum ETF.