Business intelligence firm MicroStrategy has seen substantial returns from its multi-billion dollar Bitcoin investment, with its holdings currently valued at over $60 million more than purchase prices.
- MicroStrategy has invested heavily in Bitcoin, acquiring over 150,000 BTC for $4.52 billion as of June 2022. Their average purchase price is around $29,500 per BTC.
- With the recent rise in Bitcoin’s price to around $29,900, MicroStrategy is sitting on unrealized gains of over $60 million for its Bitcoin holdings.
- MicroStrategy made its initial Bitcoin purchase in 2020 and has continued acquiring more even amid volatility. CEO Michael Saylor is a Bitcoin bull and believes it is superior to gold as a store of value.
- In April and June 2022 when Bitcoin was trading near $30,000, MicroStrategy purchased thousands more coins, showing its commitment to its Bitcoin investment strategy.
- MicroStrategy’s Bitcoin holdings have appreciated over $1 billion from the average purchase price. The results validate the company’s long-term HODL strategy.
- With crypto markets appearing more stable lately, MicroStrategy is considering how to raise additional capital to purchase more Bitcoin, rather than reducing its exposure.
Led by CEO Michael Saylor, a vocal Bitcoin bull, MicroStrategy has accumulated over 150,000 BTC since 2020 at an average price of around $29,500 per coin. With Bitcoin’s price now hovering near $29,900, these holdings represent total unrealized gains of over $60 million.
— Michael Saylor⚡️ (@saylor) October 22, 2023
Despite extreme volatility, MicroStrategy has stuck to its strategy of continually acquiring and holding Bitcoin for the long term. Even during 2022’s crypto bear market with BTC dipping below $30,000, MicroStrategy bought thousands more coins, demonstrating its faith in Bitcoin’s future appreciation.
In total, the firm has invested $4.52 billion to accumulate its sizable Bitcoin trove which has appreciated over $1 billion from average purchase prices. These results validate MicroStrategy’s conviction in Bitcoin as a superior store of value to gold.
Michael Saylor’s MicroStrategy is back in profit on its $4.68 billion Bitcoin investment.
* Average purchase price = $29,582
* Current Bitcoin price = $29,925
* Profit = $343 per
They currently hold 158,245 BTC
They are currently $54.27m in profit.
— Whale (@WhaleChart) October 22, 2023
Saylor has indicated MicroStrategy isn’t done investing in Bitcoin just yet. With crypto markets appearing to stabilize lately, the company is exploring options to raise additional capital to buy more Bitcoin rather than reducing its exposure.
MicroStrategy’s big bet on Bitcoin as a long-term investment has so far proven a winning strategy. Despite short term price swings, the firm remains confident that its patience will continue to pay off in the future as Bitcoin sees increased adoption. The $60 million in unrealized returns is likely just the start if Bitcoin sees a renewed bull run.