With the price of BTC back above $30,000, MicroStrategy’s Bitcoin investments have returned to profitability. What do these 158,245 bitcoins now represent for the company?
MicroStrategy is profitable again on its Bitcoin (BTC) investment
With the price of Bitcoin (BTC) having risen sharply in recent days, MicroStrategy’s investments in the asset are once again on the road to profitability. In fact, since our colleagues at Cointelegraph’s error concerning BlackRock’s ETF, BTC has risen by over 26%, breathing new life into the entire cryptocurrency market.
Against this backdrop, the 158,245 bitcoins acquired by MicroStrategy at an average price of $29,582 are once again profitable. The latest purchase was reported on September 25, indicating the acquisition of 5,445 BTC from August 1 to September 25 for $147.3 million, bringing the total over 2023 to 25,745 units.
For a total acquisition price of just over $4.68 billion, MicroStrategy’s Bitcoin holdings are now worth over $5.37 billion, although it should be noted that the asset’s current volatility precludes giving a precise value.
Furthermore, considering the number of Bitcoins already issued, the company’s holdings represent 0.81% of current capitalization.
A notable performance
As MicroStrategy rises in the last few days, founder Michael Saylor shares a number of unequivocal infographics on his X account. Indeed, these compare the evolution of the Bitcoin price with other assets since August 10, 2020, the date on which the company began its investment strategy.
Thus, with a performance of 147%, Bitcoin far outperforms gold, silver or bonds, which have been losing money since the benchmark date, and even the equity market, which has been positive over this period:
– Michael Saylor⚡️ (@saylor) October 20, 2023
Of course, while the positive turnaround in the market over the last ten days or so is to be welcomed, it’s no reason to rush into a bull run and question your money management.
Even so, after a disastrous 2022, we must highlight BTC’s 106% rise since January 1, which lends weight to the theory that the bear market’s low point is already behind us.