MicroStrategy Acquires 3,000 BTC Amid Bitcoin ETFs’ Impending Overtaking of Gold ETFs

Crypto News– Michael Saylor’s MicroStrategy has recently expanded its Bitcoin holdings by acquiring an additional 3,000 BTC, totaling $155 million, at an average price of $51,813 between February 15 and 25. This acquisition boosts MicroStrategy’s Bitcoin holdings to 193,000 BTC, valued at $53,489 per BTC, acquired for $6.09 billion at an average price of $31,544, as reported in a February 26 update by Michael Saylor, the founder and chairman of MicroStrategy, which stands as the largest Bitcoin holder among publicly traded companies. The announcement coincided with a security breach on MicroStrategy’s social media account, where a hacker posted malicious links to fake token airdrops, resulting in the theft of over $440,000, according to on-chain investigator ZachXBT.

MicroStrategy Acquires 3,000 BTC Amid Bitcoin ETFs’ Impending Overtaking of Gold ETFs

MicroStrategy’s latest Bitcoin purchase aligns with optimistic forecasts from senior Bloomberg analysts, who anticipate that Bitcoin exchange-traded funds (ETFs) could soon surpass gold ETFs in assets under management (AUM) within the next two years. A research report shared on February 26 by senior Bloomberg analyst Eric Balchunas and associate analyst Andre Yapp suggests that the successful launch of Bitcoin ETFs will introduce heightened competition for the precious metal.

Despite being just six weeks old, the 10 spot Bitcoin ETFs in the United States have collectively accumulated 5,500 Bitcoin since their launch on January 11, according to data from Farside Investors. Balchunas and Yapp emphasize that Bitcoin ETFs have attracted over $8 billion more than gold peers, already amassing 40% of their assets, with the potential to surpass them in size in less than two years.

While Bitcoin ETFs have seen net asset inflows exceeding $5 billion since inception, gold ETFs accumulated $3.6 billion during the same period. Gold ETFs may face challenges in maintaining their $90 billion in assets due to gold’s price performance, as noted by Balchunas and Yapp in the report. Gold prices currently stand at $2,033 per ounce, with a marginal decrease of 0.01% in the past 24 hours, according to data from Gold Price.