- Marathon CEO Fred Thiel responded to the acquisition, jokingly stating that it makes less Bitcoin available for others to purchase.
- MicroStrategy led by Michael Saylor has announced it has purchased $1.1 billion worth of Bitcoin, thus making it the biggest owner of Bitcoin amongst all the firms and companies.
- Its recent behaviour is therefore consistent with the business’s ultimate strategy of Bitcoin, which is an inflation hedge.
- The ETFs and funds have most certainly increased the Bitcoin balance from a whooping 771000 BTC to more than a million Bitcoins.
Bitcoin remains in the limelight for its performance in the corporate world particularly with MicroStrategy and Marathon Digital Holdings in the market. I think this press release emphasized on MicroStrategy’s recent acquisition of $1.1 billion worth of Bitcoin has drawn attention and response in the crypto sector, especially from Fred Thiel, the CEO of Marathon Digital Holdings. As the supply of Bitcoin remains scarce, this particular action points to a new milestone as the wheel of acquiring the digital currency intensifies.
MicroStrategy’s $1.1 Billion Bitcoin Buy
MicroStrategy, headed by Michael Saylor, has again grabbed the attention making another sensational purchase of $1.1 billion USD worth of Bitcoin. This takes MicroStrategy’s Bitcoin stash to a record 14.3 billion dollars thus making it the largest corporate holder of bitcoin. At the present, this acquisition makes one of the leading cryptocurrencies even more powerful: MicroStrategy own approximately 1.17% of the total amount of Bitcoin in circulation at the moment.
But why such an enormous investment? Based on MicroStrategy’s plan, this action reinforces the long-term vision of Bitcoin as a store of value and an inflation hedge. The actions of the company conform with the firm’s vision of Bitcoin as a digital gold.
Marathon CEO Fred Thiel responds to the MicroStrategy move
After MicroStrategy’s acquisition, Fred Thiel, Marathon Digital Holdings’ Chief Executive Officer could not remain quiet. This massive acquisition Thiel’s thoughts on it and how it makes a lesser amount of Bitcoin available for others to purchase. In a tweet, Thiel said jokingly, “Well, that’s 12,500 BTC less for the rest of us to buy now.”
This reaction is not unusual as Marathon Digital Holdings is also in the race to acquire as much Bitcoin as possible. The company recently bought another 5,000 BTC, thus raising its overall Bitcoin reserve to 26,200 BTC or roughly $1.5 billion. As we saw in this Marathon still has less Bitcoin than MicroStrategy but it has the second largest reserve among public listed companies
The Corporate Race for Bitcoin
The ongoing battle between MicroStrategy and Marathon is still continuing, even becoming more rampant. They are both a part of a growing list of companies that are now racing to acquire Bitcoin in their corporate planning. This trend, once again, supports the idea of confidence the large cap firms believe in Bitcoin’s intrinsic worth.
In the past year the total amount of BTC held by public companies has risen from 272770 BTC to 333329 BTC.. With MicroStrategy holding 14.3 billion dollars worth of BTC and Marathon Digital holds 1.5 billion USD worth of BTC. Both companies have a great impact on the cryptocurrency market.
Bitcoin Supply Crunch
Hodlers have to focus on this reality as the companies keep joining the race to buy Bitcoin – simultaneously, the supply sides seem to tighten up. However, with the current issuance of 21 million of bitcoins, it is turning into a scarce asset, especially given that the public companies are actively buying this currency. Altogether, the ETFs and funds have raised the Bitcoin balance dramatically from 771000 BTC to more than one million Bitcoins.
This growing interest in Bitcoin among corporations, ETFs, and funds raises an important question: Is the world on its way to a bitcoin supply shortage?
Read Also: Bitcoin’s Break from Gold: The Surprising Shift Explained
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