In a remarkable turn of events, MicroStrategy’s (MSTR) substantial investment in Bitcoin (BTC) has once again proven lucrative, with the cryptocurrency’s value surging towards $31,000 on Monday morning, a report by Bloomberg said.
MicroStrategy, led by former CEO turned executive chairman Michael Saylor, faced a challenging period in late 2022 when Bitcoin experienced an 80% decline from its peak in November 2021. However, strategic moves such as the anticipation of a spot ETF and the upcoming halving event have contributed to a remarkable recovery, leading to a nearly doubled price this year.
A notable figure in the Bitcoin community, Saylor has consistently advocated for the cryptocurrency and actively increased MicroStrategy’s holdings. The company has sold Bitcoin only once, executing a sale of 708 Bitcoins in December 2022, amounting to $11 million at that time.
MicroStrategy’s most recent publicized acquisitions took place in the weeks leading up to September 24th of this year, involving the purchase of 5,445 Bitcoins for just under $150 million. The average price per Bitcoin in this transaction was $27,053, bringing MicroStrategy’s total holdings to 158,245 Bitcoins. The aggregate purchase price for this significant investment stands at approximately $4.68 billion, with an average price of $29,582 per Bitcoin.
At the current Bitcoin price of $30,650, MicroStrategy’s Bitcoin holdings are now in profit territory, yielding a gain of approximately $1,000 per coin and a total profit of roughly $160 million.
MicroStrategy’s Bitcoin holdings, totaling 158,245 Bitcoins, significantly surpass those of other institutional holders, being nearly 14 times greater than the next nearest entity, as reported by data from Bitcoin Treasuries.
Looking ahead, MicroStrategy is signaling potential further investments. In August, the company announced plans to raise up to $750 million through the sale of additional stock, with a portion of the proceeds earmarked for additional Bitcoin purchases. The move underscores MicroStrategy’s ongoing commitment and confidence in the long-term potential of Bitcoin as a valuable asset.
