- Strategy has secured another $1.4 billion in Bitcoin.
- Bitcoin surged on the news of the firm’s purchase.
- Analysts now expect the cryptocurrency’s price to reach new records before July.
Strategy has topped up its Bitcoin holdings to the tune of over $1.4 billion, pushing the value of its Bitcoin stockpile to $52.3 billion in today’s prices.
The firm’s purchase of another 15,355 Bitcoin brings the company closer to Chair Michael Saylor’s goal of transforming the tech venture into a Bitcoin bank.
“The end game is to be the leading Bitcoin bank or merchant bank, or you could call it a Bitcoin finance company,” Saylor said during an event last year.
Bitcoin was up by 0.7% over the past day, trading at $94,000 at press time, but market watchers are exceedingly bullish that the leading cryptocurrency will hit new heights before July, fuelled by big buyers tapping into the asset, and a rotation from gold to Bitcoin.
“I look for a fresh all-time high of $120,000 in the second quarter,” Geoff Kendrick, the head of digital assets research at UK bank Standard Chartered, wrote in a Monday note. “Then, onto my $200,000 end-of-year forecast.”
Last week, big buyers buttressed Kendrick’s thesis with huge inflows to Bitcoin-associated exchange-traded funds, contributing to the cryptocurrency’s move from Monday lows around $84,000 to over $95,000 by Friday.
Strategy’s treasury of Bitcoin is eclipsed only by ETFs such as BlackRock’s iShares Bitcoin Trust, which held 588,686 Bitcoin worth about $55 billion as of Monday.
Some analysts predict Strategy’s stock, currently trading at $364, will hit $600 by the end of this year. That would make the firm more valuable than many notable financial institutions such as Charles Schwab and Citigroup.
Andrew Flanagan is a markets correspondent with DL News. Have a tip? Reach out to aflanagan@dlnews.com.
