Bitcoin Tops $107K, MicroStrategy Buys More | Global News Avenue

Bitcoin (Bitcoin USD) price broke another record, rising above $107,000, amid growing optimism amid reports that President-elect Donald Trump may be considering establishing a strategic reserve of Bitcoin.

The largest cryptocurrency by market capitalization broke through the $107,000 price barrier on Monday after surpassing $106,000 for the first time late Sunday. Meanwhile, MicroStrategy (Magnetic transmission technology), calling itself a Bitcoin finance company, announced another $1.5 billion purchase of Bitcoin.

MicroStrategy Stock Get up It rose more than 5% in recent trading on Monday and is up more than 527% so far this year.

Bitcoin Price, Nasdaq 100 Index MSTR Stocks

MicroStrategy purchased 15,350 Bitcoins in the week ended December 15, at an average price of approximately $100,386 per Bitcoin, the company reported. The acquisition was funded by the sale of MicroStrategy stock.

The company currently owns 439,000 Bitcoins, worth approximately $47 billion at current prices. And its bets on Bitcoin have had a big impact on its stock price. MicroStrategy’s market capitalization has grown from approximately $1.1 billion in August 2020, when it first adopted a Bitcoin strategy, to nearly $100 billion now.

MicroStrategy’s exponential share price growth this year has been driven by Bitcoin price rises. Bitcoin prices rose at the start of the year on demand from newly launched spot Bitcoin exchange-traded funds (ETFs), the Bitcoin halving, and finally Trump’s re-election and hopes of a more crypto-friendly government.

But MicroStrategy shares may have more room to rise. it is Selected into the Nasdaq 100 Index The index starting next week will involve a number of funds and ETFs, such as the Invesco QQQ Trust (QQ)—buy stocks to align their portfolio with the index.

However, Bloomberg analysts James Seyffart and Eric Balchunas said the next milestone of becoming part of the S&P 500 could be difficult. Although companies must have a market capitalization of at least $18 billion, S&P has complete discretion in deciding which companies are included.

MicroStrategy’s biggest issue may be its profitability. Analysts said the company has yet to turn a profit in the past few quarters.

However, by January 2025, things may change for MicroStrategy. Current accounting rules do not allow companies like MicroStrategy to record Bitcoin on their books at fair value. Conversely, if Bitcoin prices fall, they will be forced to take impairment losses regardless of any gains from rising Bitcoin prices. These impairments will weigh on the company’s profits. new rules by financial accounting standards board (FASB) allows for some upside from rising Bitcoin prices.