Jingle bells, Bitcoin fell but MicroStrategy keeps buying more

When other crypto investors lament a Bitcoin slump, Michael Saylor seizes the opportunity. This was evident during the holidays when Bitcoin dropped to the mid-$90,000 range, prompting MicroStrategy to purchase 5,000 more Bitcoin, as reported by Ben Weiss.

The software firm now holds $44 billion worth of Bitcoin, making it the largest corporate Bitcoin owner.

Bitcoin Price Slide
The purchase occurred as Bitcoin dipped below $100,000 and remained flat throughout December. Some blame the market downturn on Santa’s naughty list or Jerome “Crypto Grinch” Powell, Chair of the US Federal Reserve, whose comments about fewer interest rate cuts next year dampened investor sentiment.

Since Powell’s remarks, the crypto market has shed 10% of its value, now sitting at $3.52 trillion.

But for MicroStrategy, that’s no issue. The company has spent $11 billion since November, acquiring 113,000 Bitcoin.

Other firms remain undeterred by market volatility. Bitcoin is on track to end 2024 with over 100% annual gains, reinforcing its appeal. Bitwise, a crypto investment firm, has also filed for a new exchange-traded fund (ETF) in the US, aiming to track public companies with significant Bitcoin holdings, such as MicroStrategy, Coinbase, and Bitcoin miners.

Aave vs. Polygon
Meanwhile, Aleks Gilbert has spotlighted a brewing feud between two leading DeFi projects — Aave and Polygon. Two prominent Aave delegates are pushing to leave the Polygon blockchain, citing disagreements over idle stablecoins in the bridge between their protocols.

The dispute escalated when Polygon’s CEO accused Aave delegates of “anti-competitive behavior.” This conflict will likely gain traction in the new year.

Bitgalactic’s Take
MicroStrategy’s aggressive Bitcoin strategy underscores a key principle: conviction pays in the long run. Despite market fluctuations, institutional players like Saylor see Bitcoin’s potential as a hedge against macroeconomic uncertainty. On the DeFi front, disputes like Aave vs. Polygon highlight the growing pains of innovation in a rapidly evolving industry. These developments remind us that while crypto markets can be unpredictable, opportunities abound for those with a long-term perspective.