Microstrategy Now Holds 190,000 Bitcoins
Nasdaq-listed company Microstrategy has recently increased its cryptocurrency holdings to 190,000 bitcoins, adding 31,755 additional coins since the end of the third quarter. This move solidifies Microstrategy's position as "the world's first Bitcoin development company." The company believes that it offers a unique value proposition, setting itself apart even from spot bitcoin exchange-traded funds (ETFs). Microstrategy aims to contribute to the ongoing 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 Q4 2023 earnings report, in which it disclosed the purchase of an additional 31,755 BTC since the end of the third quarter. This includes 850 BTC acquired in January. Michael Saylor, the executive chairman of Microstrategy, shared the news on social media platform X, stating that the company now holds a total of 190,000 BTC.
As of December 31, 2023, the carrying value of Microstrategy's digital assets, which consists of approximately 189,150 bitcoins, amounted to $3.626 billion. This value reflects cumulative impairment losses of $2.269 billion, as explained by the company.
Andrew Kang, the chief financial officer of Microstrategy, commented, "We acquired 31,755 additional bitcoins since the end of the third quarter, marking the largest quarterly increase in bitcoin holdings in the past 3 years. This also represents the 13th consecutive quarter in which we added more bitcoin to our balance sheet. We benefited from the significant increase in bitcoin prices in Q4, and as a result, we now hold 190,000 bitcoins at an aggregate purchase price of $31,224."
'The World’s First Bitcoin Development Company'
In its Q4 earnings presentation, Microstrategy proudly proclaimed itself as "the world’s first Bitcoin development company." The company highlighted its unique value proposition, which differentiates it from spot bitcoin exchange-traded funds (ETFs).
Microstrategy described itself as a publicly-traded operating company dedicated to the continuous development of the bitcoin network. It achieves this through its involvement in the financial markets, advocacy efforts, and technology innovation. The company's operating structure allows it to utilize cashflows, as well as proceeds from equity and debt financings, to accumulate bitcoin. Bitcoin serves as Microstrategy's primary treasury reserve asset.
Additionally, Microstrategy is known for developing and providing industry-leading AI-powered enterprise analytics software. This software aligns with the company's vision of Intelligence Everywhere. Microstrategy leverages its software development capabilities to create bitcoin applications, further cementing its commitment to technology innovation.
Microstrategy firmly believes that its operating structure, bitcoin strategy, and focus on technology innovation provide a unique opportunity for value creation.
What are your thoughts on Microstrategy's accumulation of 190,000 bitcoins and its self-proclaimed status as the world's first Bitcoin development company? Share your opinions in the comments section below.
Frequently Asked Questions
Is gold a good investment IRA?
If you are looking for a way to save money, gold is a great investment. It is also an excellent way to diversify you portfolio. But there is more to gold than meets the eye.
It has been used throughout the history of currency and remains a popular payment method. It is often called “the most ancient currency in the universe.”
But gold, unlike paper currency, which is created by governments, is mined out from the ground. That makes it very valuable because it's rare and hard to create.
Gold prices fluctuate based on demand and supply. If the economy is strong, people will spend more money which means less people can mine gold. This results in gold prices rising.
On the other hand, people will save cash when the economy slows and not spend it. This means that more gold is produced, which reduces its value.
This is why investing in gold makes sense for individuals and businesses. You'll reap the benefits of investing in gold when the economy grows.
Your investments will also generate interest, which can help you increase your wealth. Plus, you won't lose money if the value of gold drops.
Should You Buy Gold?
Gold was a safe investment option for those who were in financial turmoil. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.
Some experts think that this could change in the near future. They say that gold prices could rise dramatically with another global 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.
- Consider first whether you will need the money to save for retirement. It's possible to save for retirement without putting your savings into gold. However, you can still save for retirement without putting your savings into gold.
- Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each offers varying levels of flexibility and security.
- Remember that gold is not as safe as a bank account. If you lose your gold coins, you may never recover them.
If you are thinking of buying gold, do your research. Make sure to protect any gold you already own.
How much money should my Roth IRA be funded?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. You can't withdraw money from these accounts before you reach the age of 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, your principal (the original deposit amount) cannot be touched. This means that no matter how much you contribute, you can never take out more than what was initially contributed to this account. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule is that you cannot withdraw your earnings without paying income taxes. When you withdraw, you will have to pay income tax. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's also assume that you make $10,000 per year from your Roth IRA contributions. The federal income tax on your earnings would amount to $3,500. This leaves you with $6,500 remaining. You can only take out what you originally contributed.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. In addition, 50% of your earnings will be subject to tax again (half of 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
There are two types if Roth IRAs, Roth and Traditional. Traditional IRAs allow you to deduct pretax contributions from your taxable income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. There are no restrictions on the amount you can withdraw from a Traditional IRA.
A Roth IRA doesn't allow you to deduct your contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. There is no minimum withdrawal required, unlike a traditional IRA. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
What are some of the benefits of a gold IRA
The best way to save money for retirement is to place it in an Individual Retirement Account. You can withdraw it at any time, but it is tax-deferred. You have total control over how much each year you take out. There are many types of IRAs. Some are more suitable for students who wish to save money for college. Some are for investors who seek higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. The earnings earned after they withdraw the funds aren't subject to any tax. This type of account might be a good choice if your goal is to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA that requires you to pay taxes on the gains you make while you wait to access them, a gold IRA does not have to do this. For people who would rather invest than spend their money, gold IRA accounts are a good option.
Another benefit to owning IRA gold is the ability to withdraw automatically. This means that you don't need to worry about making monthly deposits. To ensure that you never miss a payment, you could set up direct debits.
Finally, gold remains one of the best investment options today. Its value is stable because it's not tied with any one country. Even during economic turmoil, gold prices tend to stay relatively stable. This makes it a great investment option to protect your savings from inflation.
What does gold do as an investment?
The supply and demand for gold affect the price of gold. Interest rates are also a factor.
Gold prices are volatile due to their limited supply. Physical gold is not always in stock.
How is gold taxed within a Roth IRA
An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
Each state has its own rules regarding these accounts. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. Massachusetts allows you to wait until April 1. New York allows you to wait until age 70 1/2. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
Are You Ready to Invest in Gold?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. If you are unsure which option to choose, consider investing in both options.
Gold is a safe investment and can also offer potential returns. Retirement investors will find gold a worthy investment.
While many investments promise fixed returns, gold is subject to fluctuations. Its value fluctuates over time.
This doesn't mean that you should not invest in gold. It is important to consider the fluctuations when planning your portfolio.
Another benefit to gold is its tangible value. Gold is less difficult to store than stocks or bonds. It can be easily transported.
As long as you keep your gold in a secure location, you can always access it. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold tends to rise when the stock markets fall.
Another advantage to investing in gold is the ability to sell it whenever you wish. Like stocks, you can sell your position anytime you need cash. You don’t even need to wait until retirement to liquidate your position.
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.
Also, don't buy too much at once. Start by purchasing a few ounces. Continue adding more as necessary.
The goal is not to become rich quick. It is to create enough wealth that you no longer have to depend on Social Security.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- (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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
bbb.org
cftc.gov
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
How To
Guidelines for Gold Roth IRA
It is best to start saving early for retirement. Start saving as soon as possible, usually at age 50. You can continue to save throughout your career. It is important to invest enough money each and every year to ensure you get adequate growth.
You may also wish to take advantage of tax-free investments such as a SIMPLE IRA, SEP IRA, and traditional 401(k). These savings vehicles allow you the freedom to contribute without having to pay tax on your earnings until they are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.
It is important to save consistently over time. You will lose any potential tax advantages if you don't contribute enough.
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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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