MicroStrategy’s bitcoin Holdings Now Returning to Profits. MicroStrategy is well known for being one of the biggest buyers of bitcoin in recent years. The company believes in bitcoin so much that bitcoin-news/microstrategy-to-sell-750-million-in-stocks/” target=”_blank” rel=”noopener nofollow”>sold some of his shares to increase your bitcoin holdings. This would seem extreme to some investors, but as the recent price action suggests, MicroStrategy’s bitcoin strategy appears to be paying off.
How MicroStrategy’s bitcoin strategy is going
MicroStrategy began investing in bitcoin in 2020, becoming one of the first companies to do so. The company began purchasing $250 million worth of bitcoin in August 2020 and has not slowed down since. In his last move, bitcoin-news/microstrategy-expands-bitcoin-holdings-with-147-3-million-purchase/” target=”_blank” rel=”noopener nofollow”>MicroStrategy acquired approximately 5,445 Bitcoins for approximately $147.3 million between August 1, 2023 and September 24, 2023. According to the company’s report purchase presentationAs of September 24, 2023, MicroStrategy holds approximately 158,245 Bitcoins purchased at a price of approximately $4.68 billion.
On the other hand, bitcoin has had one of the strongest advances in the cryptocurrency market in recent weeks and is now trying to build strong momentum above $30,000. At the time of writing, bitcoin is up 11.08% over a seven-day period. Although the cryptocurrency is now trading at $29,838, bitcoin-news/bitcoin-knocks-at-the-door-of-30000-but-can-break-happen/” target=”_blank” rel=”noopener nofollow”>crossed over $30,000 in multiple cases during the week.
Amid all this market turmoil, MicroStrategy’s bitcoin holdings have improved in terms of profitability. Since MicroStrategy’s total bitcoin holdings were purchased at an average of $29,582 per coin, the company has now made a total profit of around $67.4 million with bitcoin at $30,000.
bitcoin price nearing the $30K level today. Chart: TradingView.com
A solid bitcoin approach?
bitcoin has been on an incredible run over the past year, massively outperforming the stock market and most other conventional investments. The cryptocurrency is now in prime position for a price surge in the coming months. Many financial analysts have hinted that a bull run bitcoin/why-this-renowned-finance-author-believes-bitcoin-is-headed-to-135000/” target=”_blank” rel=”noopener nofollow”>to a new all-time high for cryptocurrency could be on the horizon, especially as the industry awaits the bitcoin-news/coinbase-bullish-bitcoin-etf-approval-expected-after-secs-defeat/” target=”_blank” rel=”noopener nofollow”>approval of a bitcoin spot ETF from the US SEC
bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>#bitcoin is strong. pic.twitter.com/Pn5sphx6Mj
—Michael Saylor (@saylor) October 20, 2023
It has been a while since MicroStrategy’s bitcoin holdings turned a profit, as bitcoin has been hit by several market crashes. According to data from CryptoQuant, MicroStrategy benefited greatly during the 2021 bull run. But since then things have been quiet and the company has only topping up your bitcoin holdings from time to time.
As things stand, MicroStrategy will benefit more than most companies in the event of a new confinement. If bitcoin reaches $50,000, MicroStrategy’s holdings would be almost double their current value. The company will likely continue to purchase more bitcoin over time as it plans to make bitcoin a large percentage of its total assets.
Featured Image from ETF Database