MicroStrategy’s Bitcoin Holdings in Profit Again
In recent years, MicroStrategy has gained a reputation as one of the largest buyers of Bitcoin. The company’s strong belief in the cryptocurrency prompted them to sell some of their stocks to increase their Bitcoin holdings, a move that some investors may view as extreme. However, recent price action suggests that MicroStrategy’s Bitcoin strategy is paying off.
MicroStrategy’s Bitcoin Journey
In 2020, MicroStrategy became one of the first companies to invest in Bitcoin. They started by purchasing $250 million worth of Bitcoin in August 2020 and have continued to expand their holdings since. In their most recent move, MicroStrategy acquired approximately 5,445 Bitcoins for approximately $147.3 million between August 1, 2023, and September 24, 2023. As of September 24, 2023, the company owns approximately 158,245 Bitcoins, bought at an approximate price of $4.68 billion, according to their purchase filing.
Bitcoin’s Strong Performance
Bitcoin has experienced a significant surge in the crypto market recently and is now attempting to build strong momentum above $30,000. Currently up by 11.08% in a seven-day timeframe, Bitcoin has surpassed the $30,000 mark multiple times this week, although it is currently trading at $29,838.
Amidst this market upheaval, MicroStrategy’s Bitcoin holdings have become profitable. With an average purchase price of $29,582 per coin, the company has achieved a total profit of approximately $67.4 million with Bitcoin now at $30,000.
Bitcoin price nearing the $30K level today. Chart: TradingView.com
A Robust Bitcoin Approach?
Bitcoin has outperformed the stock market and many other mainstream investments over the past year. It is now poised for a potential price surge in the coming months. Financial analysts have even suggested the possibility of a new all-time high for the cryptocurrency, especially as the industry anticipates the approval of a spot Bitcoin ETF from the US SEC.
MicroStrategy’s Bitcoin holdings have not turned a profit in a while, as they have experienced numerous market crashes. However, during the 2021 bull run, the company benefited greatly. While they have only been topping up their Bitcoin holdings sporadically, they stand to benefit significantly in the event of a new bull run. If Bitcoin reaches $50,000, MicroStrategy’s holdings would nearly double in value. The company plans to continue buying more Bitcoin over time, aiming to make it a significant portion of their total assets.
With MicroStrategy’s Bitcoin strategy proving successful, they are well-positioned to capitalize on the cryptocurrency’s potential growth.
