The cryptocurrency industry has experienced significant growth in recent weeks with capital inflows. This influx of capital has forced bitcoin on various price resistances, the last being a brief crossover above the $37,000 level. MicroStrategy has become a prominent public company that has successfully capitalized on this price increase.
MicroStrategy’s successful bet on the world’s largest cryptocurrency has certainly bitcoin-strategy-is-going/” rel=”nofollow”>So far it has paid off. The company has recorded more than $1 billion in unrealized gains thanks to bitcoin‘s 36% rise from $26,750 since October 13. MicroStrategy shares have also risen simultaneously, skyrocketing more than 55% since the same period.
MicroStrategy’s bold bet on bitcoin is paying off
MicroStrategy started buying bitcoin in 2020, but the latest acquisition came in octoberamid the influx of money into bitcoin, where the company announced that it had acquired an additional 155 btc for $5.3 million.
MicroStrategy now holds a total of 158,245 btc, acquired for an average total value of $4.68 billion. At the current btc price of around $36,500, MicroStrategy’s btc investment is now worth more than $5.77 billion, representing a 26% unrealized return on $1.1 billion over roughly three years.
The company’s investment in bitcoin has also paid off on the back of its share price, as it has outperformed many stocks and assets since adopting bitcoin-purchase-explain-pattern/” rel=”nofollow”>your bitcoin strategy. The stock price has soared 242% from its opening price of $145 at the beginning of the year.
At the time of writing, MicroStrategy shares are trading at $497, and Michael Saylor noted that this growth is largely due to its innovative bitcoin strategy.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/11/MicroStrategys-46-Billion-Bitcoin-Bet-Pays-Off-Heres-How-Much" alt="bitcoin Price Chart from Tradingview.com (MicroStrategy)” width=”2650″ height=”1742″ loading=”lazy”/>
btc resumes uptrend | Source: BTCUSD on Tradingview.com
btc putting microstrategy on the map
MicroStrategy’s Michael Saylor has been a bitcoin-exclusive-future/” rel=”nofollow”>outspoken bitcoin advocate. Saylor’s belief in bitcoin spearheaded MicroStrategy’s investment in the asset, and a cursory look at his social media page on X shows several posts promoting bitcoin.
bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin is coming. pic.twitter.com/5oE42SQvgC
—Michael Saylor (@saylor) November 9, 2023
Saylor recently stated, in a interview with Fox Businessthat MicroStrategy’s btc investments were part of a well-planned strategy to rival tech giants like Google, Microsoft, and Apple.
“What we did in August 2020 was recognize that there is no way for us to surpass Google, Microsoft and Apple Computer as a mid-sized software company. We realized that bitcoin is like a dominant high-tech digital network that grows at a rate of 40% or 50% a year, and that’s why we bought it,” he said in the interview.
Saylor also hopes that bitcoin-demand-set-to-soar-10-fold-michael-saylor/” rel=”nofollow”>btc demand will double in the next 12 months amid its upcoming halving and bitcoin Spot ETF Approvals in the US Ultimately, he believes that the price of btc will eventually reach $5 million.
MicroStrategy is not the only company with bitcoin on its balance sheet. Public companies now hold a total of 239,494 btc, representing 1.23% of the total supply. Marathon Digital, Galaxy Digital and Tesla are some of these companies, with 13,286, 12,545 and 10,500 btc, respectively.
Featured image from MicroStrategy, chart from Tradingview.com
