Microstrategy Now Holds 190,000 Bitcoins
Nasdaq-listed Microstrategy has increased its cryptocurrency holdings to 190,000 bitcoins, having acquired 31,755 additional coins since the end of the third quarter. The company now considers itself "the world's first Bitcoin development company," with a unique value proposition, even when compared to spot bitcoin exchange-traded funds (ETFs). Microstrategy detailed that it is a publicly-traded operating company committed to the continued development of the Bitcoin network through its activities in the financial markets, advocacy, and technology innovation.
Microstrategy's Bitcoin Acquisition
Microstrategy Inc. (Nasdaq: MSTR) released its earnings report for Q4 2023 on Tuesday, revealing that it bought 31,755 more BTC since the end of the third quarter, including 850 BTC acquired in January. Microstrategy executive chairman Michael Saylor announced on social media platform X Tuesday that the company now holds 190,000 BTC. As of December 31, 2023, the carrying value of Microstrategy's digital assets, comprised of approximately 189,150 bitcoins, was $3.626 billion, reflecting cumulative impairment losses of $2.269 billion.
Andrew Kang, Microstrategy's chief financial officer, commented, "We acquired 31,755 additional bitcoins since the end of the third quarter, marking the largest quarterly bitcoin holding increase in the last 3 years and the 13th consecutive quarter of adding more bitcoin to our balance sheet. We now hold 190,000 bitcoins at an aggregate purchase price of $31,224."
Microstrategy as the World's First Bitcoin Development Company
In its Q4 earnings presentation, Microstrategy stated that it considers itself the world's first Bitcoin development company. The company highlighted its unique value proposition compared to spot bitcoin exchange-traded funds (ETFs). Microstrategy described itself as a publicly-traded operating company committed to the continued development of the Bitcoin network through its activities in the financial markets, advocacy, and technology innovation. It emphasized that as an operating business, it can use cashflows, as well as proceeds from equity and debt financings, to accumulate bitcoin, which serves as its primary treasury reserve asset. Microstrategy also mentioned its development of industry-leading AI-powered enterprise analytics software that promotes its vision of Intelligence Everywhere and its use of software development capabilities to develop bitcoin applications. The company believes that the combination of its operating structure, bitcoin strategy, and focus on technology innovation provides a unique opportunity for value creation.
What do you think about Microstrategy accumulating 190K bitcoins and calling itself the world's first Bitcoin development company? Let us know in the comments section below.
Frequently Asked Questions
How to Open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). To open the account, complete Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. You must complete this form within 60 days of opening your account. Once you have completed this form, it is possible to begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.
If you opt for a Roth IRA, you must complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. The IRS states that you must be at least 18 and have earned income. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). Additionally, you must make regular contributions. These rules are applicable whether you contribute through your employer or directly from the paychecks.
You can invest in precious metals IRAs to buy gold, palladium and platinum. However, you won't be able purchase physical bullion. This means you can't trade shares of stock and bonds.
You can also use your precious metallics IRA to invest in companies that deal with precious metals. This option is offered by some IRA providers.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they are not as liquid or as easy to sell as stocks and bonds. It's also more difficult to sell them when they are needed. Second, they don't generate dividends like stocks and bonds. Therefore, you will lose money over time and not gain it.
Should You Invest in gold for Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. Consider investing in both.
You can earn potential returns on your investment of gold. Retirees will find it an attractive investment.
Although most investments promise a fixed rate of return, gold is more volatile than others. Its value fluctuates over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. It just means that you need to factor in fluctuations to your overall portfolio.
Another advantage of gold is its tangible nature. Gold can be stored more easily than stocks and bonds. It is also easily portable.
You can always access your gold if it is stored in a secure place. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
A portion of your savings can be invested in something that doesn't go down in value. Gold usually rises when stocks fall.
Investing in gold has another advantage: you can sell it anytime you want. Like stocks, you can sell your position anytime you need cash. You don't have to wait for retirement.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
Don't purchase too much at once. Start small, buying only a few ounces. Add more as you're able.
The goal is not to become rich quick. Instead, the goal is to accumulate enough wealth that you don't have to rely on Social Security.
And while gold might not be the best investment for everyone, it could be a great supplement to any retirement plan.
How Do You Make a Withdrawal from a Precious Metal IRA?
You first need to decide if you want to withdraw money from an IRA account. Make sure you have enough cash in your account to cover any fees, penalties, or charges that may be associated with withdrawing money from an IRA.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, determine how much money you plan to withdraw from your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Once you have completed these calculations, you need to open your brokerage account. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage areas will accept bullion, while others require you to purchase individual coins. You will need to weigh each one before making a decision.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. But you will have to count each coin separately. However, keeping individual coins in a separate place allows you to easily track their values.
Some prefer to store their coins in a vault. Some prefer to keep them in a vault. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.
How much should you have of gold in your portfolio
The amount of money you need to make depends on how much capital you are looking for. A small investment of $5k-10k would be a great option if you are looking to start small. As your business grows, you might consider renting out office space or desks. So you don't have all the hassle of paying rent. You only pay one month.
It is also important to decide what kind of business you want to run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. This means that you may only be paid once every six months.
You need to determine what kind or income you want before you decide how much of it you will need.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
Should You Buy 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.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Experts believe this could change soon. According to them, gold prices could soar if there is another financial crisis.
They also point out that gold is becoming popular because of its perceived value and potential return.
Consider these things if you are thinking of investing in gold.
- Consider whether you will actually need the money that you are saving for retirement. It is possible to save enough money to retire without investing in gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, be sure to understand your obligations before you purchase gold. Each type offers varying levels and levels of security.
- Don't forget that gold does not offer the same safety level as a bank accounts. Losing your gold coins could result in you never being able to retrieve them.
Don't buy gold unless you have done your research. Make sure to protect any gold you already own.
Statistics
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Lawful – WSJ
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was universally accepted and loved for its beauty, durability, purity and divisibility. It was also traded internationally due to its high value. There were different measures and weights for gold, as there was no standard to measure it. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
In the 1860s, the United States began to issue American coins made from 90% copper, 10% Zinc, and 0.942 Fine Gold. This resulted in a decline of foreign currency demand and an increase in the price. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. The U.S. government was unable to pay its debts due to too much money being in circulation. They sold some of their excess gold to Europe to pay off the debt.
Because most European countries did not trust the U.S. dollar, they started accepting gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. Since then, the price of gold has increased significantly. Even though gold's price fluctuates, it is still one of the most secure investments you could make.
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By: Kevin Helms
Title: Microstrategy Raises Bitcoin Holdings to 190K BTC — Calls Itself ‘World’s First Bitcoin Development Company'
Sourced From: news.bitcoin.com/microstrategy-raises-bitcoin-holdings-to-190k-btc-calls-itself-worlds-first-bitcoin-development-company/
Published Date: Thu, 08 Feb 2024 01:30:26 +0000
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