In a notable turn of events for the business intelligence (BI) company Microstrategythe recent bullish momentum of bitcoin (btc) has resulted in significant gains and a resurgence for the company.
MicroStrategy has returned to a profitable trajectory after a prolonged period of market decline and losses suffered by companies with cryptocurrency holdings.
MicroStrategy bitcoin Holdings Rise
Just a month ago, MicroStrategy and its subsidiaries took a strategic step to growing your btc holdings. According to a filing with the US Securities and Exchange Commission (SEC), the company, co-founded by renowned investor Michael Saylor, added 5,455 btc to its portfolio, valued at $147 million.
At the time of writing, MicroStrategy’s bitcoin holdings stand at a staggering 158,245 btc, with a total valuation of approximately $4.68 billion.
In the last 24 hours, bitcoin has seen a notable rally, breaking through a long consolidation phase above $27,000 and reaching a new high in 2023. With a significant 12.2% increase, btc reached a high of $35,300 . This increase has generated significant unrealized benefits for MicroStrategy.
According According to Lookonchain, MicroStrategy’s bitcoin holdings have generated an estimated unrealized gain of around $746 million.
With btc‘s skyrocketing price, MicroStrategy’s strategic accumulation of 28,560 btc since May 2022, at an average price of $25,707, has proven profitable.
MicroStrategy’s success in capitalizing on bitcoin‘s recent price surge highlights the company’s strategic approach and its belief in the long-term value of the cryptocurrency.
By significantly increasing its bitcoin holdings, MicroStrategy has positioned itself to benefit from the continued growth and adoption of btc.
btc Bears Get Crushed as $300 Million Shorts Liquidate
The cryptocurrency market saw an astonishing surge, resulting in a staggering addition of $100 billion to its total market capitalization in a single day. This rapid rise also triggered a wave of liquidations worth more than $400 million, of which short positions accounted for a significant portion of the losses.
With btc experiencing a 12% price increase, this led to the settlement of over $180 million in short positions out of a total of $222 million in btc liquidations.
ethereum (eth) traders also suffered a significant loss of $60 million, of which $44 million came from those anticipating a drop. price dropaccording data from CoinGlass.
The majority of these liquidations, totaling $317 million, occurred in the last 12 hours, with short sellers accounting for a substantial 76% ($241 million) of the total losses.
At the same time, the trading volumes of the three major cryptocurrencies in the derivatives market saw significant growth.
bitcoin volume saw a notable 221% increase, while ethereum and XRP saw a 108% increase in trading activity. As a result, approximately 95,000 traders faced liquidation during this period of intense market volatility.
Scott Melker, investor and cryptocurrency podcast host, commented about the situation, expressing:
bitcoin bears have been left reeling as the market witnessed an extraordinary rally, resulting in massive liquidations of short positions. This surge has taken many traders by surprise, resulting in substantial losses in a short period.
Featured image from Shutterstock, chart from TradingView.com
