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MicroStrategy Continues to Buy Bitcoin, Adding 5,445 BTC to Its Holdings

MicroStrategy, a major Bitcoin investor and business intelligence firm, has recently purchased an additional 5,445 BTC, further affirming its bullish stance on the cryptocurrency. The announcement was made by Michael Saylor, co-founder and executive chairman at MicroStrategy, on Monday via X.

The firm acquired the latest stash of Bitcoin at an average price of $27,053 per coin, amounting to a total investment of approximately $147.3 million. This recent acquisition was funded using proceeds from stock sales, as MicroStrategy Inc., the largest publicly traded holder of Bitcoin, continues to expand its cryptocurrency holdings.

As of September 24, MicroStrategy and its subsidiaries held a total of approximately 158,245 bitcoins. These were procured at an average purchase price of roughly $29,582 per BTC, inclusive of fees and expenses. The aggregate purchase price for MicroStrategy’s total Bitcoin holdings has amounted to $4.68 billion.

MicroStrategy’s commitment to Bitcoin is not new. In June 2023, the firm bought 12,333 BTC for $347 million at an average purchase price of $29,668 per BTC. Furthermore, the company reported its first profitable quarter since 2020 in Q1 2023 due to a one-time income tax benefit and managed to retain profitability in the following quarter with a net income of $22.2 million reported in early August.

Despite the recent sideways trading of Bitcoin around $26,000, MicroStrategy’s latest purchase demonstrates its confidence in the cryptocurrency’s long-term potential. The company’s continued investment in Bitcoin is a positive signal for the market and could help to attract more institutional investors.

Berntein Research Predicts Crypto Asset Management Industry to Grow to $500-$650 Billion Within Five Years

The crypto asset management industry is poised for rapid growth in the coming years, according to a new report from Bernstein Research. The analysts, led by Gautam Chhugani, expect the industry to hold from $500 billion to $650 billion within the next five years, up from about $50 billion today.

Their optimism is driven by several factors, including the potential approval of a spot Bitcoin exchange-traded fund (ETF). Last month, a court said the Securities and Exchange Commission (SEC) erred when it rejected a bid by Grayscale Investments to convert the Grayscale Bitcoin Trust (GBTC) into an ETF.

If the SEC stops fighting, the Bitcoin funds could come to market as soon as early next year, and the Bernstein team expects the ETFs to get about a 10% share of the market capitalizations of Bitcoin and Ether, the second-largest token.

Lately, there have been signs that some institutions are warming to crypto, even as retail traders have all but disappeared on trading platforms like Coinbase Global.

In addition to Grayscale, BlackRock, Fidelity, WisdomTree, Invesco, and others have applied to launch Bitcoin ETFs. Some fund companies are also seeking to launch products that hold spot Ether or Ethereum-linked futures.

Companies including PayPal Holdings and Visa have launched tokens as well or announced partnerships that would deepen their ties to the crypto industry.

But regulation is still holding back many institutions. SEC Chair Gary Gensler, despite the agency’s court losses, still says the crypto industry is rife with fraud and with companies that aren’t in compliance with securities laws.

The industry isn’t getting much help from lawmakers. While there’s a chance bills that would change rules around the crypto industry could clear the House of Representatives this year, there has been little interest in the Senate to pick up the effort.

Despite the lack of legislation, the Bernstein analysts bet the spat of enforcement actions is fading. “The meat of regulatory backlash is done for now, and the Coinbase case will provide further clarity,” they wrote.

Overall, the Bernstein report is bullish on the future of the crypto asset management industry. The analysts believe that the potential approval of a spot Bitcoin ETF, combined with the increasing interest from institutional investors, will drive rapid growth in the industry in the coming years.

Shayne Heffernan

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