Microstrategy Adds 14,620 Bitcoin to its Holdings
Nasdaq-listed software intelligence firm, Microstrategy, has announced its latest purchase of 14,620 bitcoin, bringing its total cryptocurrency holdings to 189,150 BTC. The acquisition was made for approximately $615.7 million, at an average price of $42,110 per coin. This brings Microstrategy's total investment in bitcoin to around $5.9 billion, with an average purchase price of $31,168 per coin.
Michael Saylor Sees Potential in Bitcoin ETFs
Microstrategy's executive chairman, Michael Saylor, is optimistic about the future of bitcoin. In a recent social media update, he expressed his belief that spot bitcoin exchange-traded funds (ETFs) could be the most significant development in the history of Wall Street. Saylor stated that Bitcoin represents the digital transformation of capital, and many are starting to realize that they are underallocated in this asset.
Microstrategy's Bitcoin Strategy Maximizes Long-Term Value
Saylor has been a vocal proponent of his company's bitcoin strategy, which aims to maximize long-term value for shareholders. He views bitcoin as a reliable store of value and an attractive investment asset that has the potential for long-term appreciation. According to Saylor, bitcoin offers more potential than holding cash, as demonstrated by the significant increase in BTC's price since Microstrategy adopted its bitcoin strategy in August 2020.
Bitcoin Outperforms Traditional Assets
Saylor highlighted the performance of bitcoin compared to traditional assets. Since August 2020, BTC's price has surged by 253%, while the S&P 500 saw a modest increase of 40% and the Nasdaq rose by 35%. In contrast, gold remained stagnant, silver experienced a decline of 14%, and bonds plummeted by 18%. These figures emphasize the potential of bitcoin as a valuable investment asset.
Bitcoin ETFs: A Game-Changer on Wall Street
Saylor believes that the approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) could revolutionize the financial industry. Currently, the SEC is evaluating 13 spot bitcoin ETF applications, and it is expected that multiple applications will be approved by January 10. If approved, these ETFs could open up new avenues for investors to gain exposure to bitcoin and further legitimize the cryptocurrency in the eyes of traditional investors.
Microstrategy Continues to Expand its Bitcoin Holdings
Microstrategy's latest bitcoin purchase demonstrates its ongoing commitment to the cryptocurrency. With a total holding of 189,150 BTC, the company remains one of the largest institutional investors in bitcoin. As the cryptocurrency market continues to evolve, Microstrategy's strategic investment in bitcoin positions the company to benefit from the growing adoption and appreciation of this digital asset.
What are your thoughts on Microstrategy's increasing bitcoin holdings? Share your opinions in the comments below.
Frequently Asked Questions
Can I purchase gold with my self directed IRA?
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. They let you speculate on future price without having to own the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
What is a Precious Metal IRA and How Can You Benefit From It?
A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These rare metals are often called “precious” as they are very difficult to find and highly valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Bullion is often used to refer to precious metals. Bullion refers simply to the physical metal.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This means you'll receive dividends every year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, you pay a small percentage tax on the gains. Additionally, you have access to your funds at no cost whenever you need them.
How much are gold IRA fees?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This fee includes account maintenance fees as well as any investment costs related to your selected investments.
To diversify your portfolio you might need to pay additional charges. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Most providers also charge an annual management fee. These fees can range from 0% up to 1%. The average rate is.25% each year. These rates can be waived if the broker is TD Ameritrade.
Should You Buy or Sell Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
Experts think this could change quickly. According to them, gold prices could soar if there is another financial crisis.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
These are some important things to remember if your goal is to invest in gold.
- Before you start saving money for retirement, think about whether you really need it. You can save money for retirement even if you don't invest in gold. However, you can still save for retirement without putting your savings into gold.
- Second, ensure you fully understand the risks involved in buying gold. Each account offers different levels of security and flexibility.
- Don't forget that gold does not offer the same safety level as a bank accounts. If you lose your gold coins, you may never recover them.
Don't buy gold unless you have done your research. If you already have gold, make sure you protect it.
What are the pros and disadvantages of a gold IRA
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. An IRA is a great way to save money and not have to pay taxes on the interest you earn. There are some disadvantages to this investment.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. A penalty fee will be charged if you decide to withdraw funds.
The downside is that managing your IRA requires fees. Most banks charge 0.5% to 2.0% per annum. Other providers charge monthly management costs ranging from $10-50.
Insurance is necessary if you wish to keep your money safe from the banks. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. You might be required to buy insurance that covers losses up to $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers restrict the amount you can own in gold. Others allow you to pick your weight.
It's also important to decide whether or not to buy gold futures contracts. Physical gold is more expensive than gold futures contracts. Futures contracts, however, allow for greater flexibility in buying gold. You can set up futures contracts with a fixed expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy does NOT include theft protection and loss due to fire or flood. It does provide coverage for damage from natural disasters, however. Additional coverage may be necessary if you reside in high-risk areas.
You should also consider the cost of storage for your gold. Insurance doesn't cover storage costs. Safekeeping costs can be as high as $25-40 per month at most banks.
You must first contact a qualified custodian before you open a gold IRA. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians can't sell assets. Instead, they must retain them for as long and as you require.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. You should also specify how much you want to invest each month.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. The company will review your application and send you a confirmation letter.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. A financial planner can help you decide the type of IRA that is right for your needs. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
Can I keep a Gold ETF in a Roth IRA
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
Traditional IRAs allow for contributions from both employees and employers. A Employee Stock Ownership Plan, or ESOP, is another way to invest publicly traded companies.
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
A Individual Retirement Annuity is also possible. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs do not have to be taxable
How does gold perform as an investment?
Gold's price fluctuates depending on the supply and demand. Interest rates can also affect the gold price.
Due to the limited supply of gold, prices for gold are highly volatile. Physical gold is not always in stock.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
irs.gov
bbb.org
How To
Guidelines for Gold Roth IRA
It is best to start saving early for retirement. You should start as soon as you are eligible (usually at age 50) and continue saving throughout your career. It is important to invest enough money each and every year to ensure you get adequate growth.
You can also take advantage of tax-free savings opportunities like a traditional 401k (k), SEP IRA (or SIMPLE IRA). These savings vehicles permit you to make contributions, but not pay any tax until your earnings are withdrawn. This makes them a great choice for people who don’t have access employer matching funds.
The key is to save regularly and consistently over time. If you don't contribute the maximum amount, you will miss any tax benefits.
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By: Kevin Helms
Title: Microstrategy Acquires More Bitcoin, Raising Total Holdings to 189,150 BTC
Sourced From: news.bitcoin.com/microstrategy-acquires-more-bitcoin-raising-total-holdings-to-189150-btc/
Published Date: Wed, 27 Dec 2023 16:30:13 +0000
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