“MicroStrategy’s bold move into Bitcoin is not just a financial strategy, but a testament to the increasing recognition of cryptocurrencies as a legitimate asset class in the corporate world.”
MicroStrategy, one of the largest Bitcoin buyers, is seeing its Bitcoin holdings turn profitable once again. The company has been a strong believer in Bitcoin and even sold some of its stocks to increase its Bitcoin holdings. This strategy seems to be paying off as recent price action suggests.
MicroStrategy began investing in Bitcoin in 2020, becoming one of the first companies to do so. Since then, the firm has continuously bought Bitcoin, with its latest acquisition being approximately 5,445 Bitcoins for around $147.3 million. As of September 24, 2023, MicroStrategy owns approximately 158,245 Bitcoins, bought at an average price of $29,582 per coin.
Meanwhile, Bitcoin has been experiencing significant growth in recent weeks, with its price attempting to surpass $30,000. Although the cryptocurrency is currently trading at $29,838, it has crossed the $30,000 mark multiple times during the week.
In terms of profitability, MicroStrategy’s Bitcoin holdings have now achieved a total profit of about $67.4 million with Bitcoin at $30,000. This is a positive turn for the company, considering its average purchase price per coin.
Bitcoin has outperformed the stock market and other mainstream investments, making it an attractive asset. Many financial analysts predict that a new all-time high for the cryptocurrency is on the horizon. The industry is eagerly awaiting the approval of a spot Bitcoin ETF from the US SEC, which could further boost Bitcoin’s price.
MicroStrategy stands to benefit greatly from a potential bull run. If Bitcoin reaches $50,000, the company’s holdings would almost double in value. MicroStrategy plans to continue buying more Bitcoin, aiming to make it a significant portion of its total assets.
Overall, MicroStrategy’s Bitcoin strategy seems to be a sturdy approach considering the current market trends. The company’s belief in Bitcoin has paid off so far, and it remains well-positioned for future growth.