As the price of Bitcoin confirms its upward trend, surpassing $50,000, MicroStrategy’s latent profit on its BTC continues to grow. It now stands at $3.5 billion, while the size of this position represents 78.5% of the company’s market capitalization. Let’s take a closer look at these figures
Bitcoin’s rise makes MicroStrategy’s latent profits on its BTCs explode
On Monday evening, the price of BTC once again surpassed the symbolic $50,000 mark, thereby seeming to confirm the upward trend that has cautiously taken hold over the space of a year. Beyond the fact that we’re now sailing in price zones we haven’t seen since December 2021, one company in particular is benefiting from Bitcoin’s good health: MicroStrategy.
Indeed, the company founded by Michael Saylor now sees all its Bitcoin holdings valued at over $9.5 billion, for a total of 190,000 BTC. Interestingly, this amount represents the equivalent of 78.5% of the group’s $12.1 billion market capitalization.
On February 6, Andrew Kang, MicroStrategy’s CFO, commented on the company’s constant replenishment when announcing the financial results for Q4 2023:
“We have acquired an additional 31,755 bitcoins since the end of Q3, marking the largest quarterly increase in bitcoin holdings in the last 3 years and the 13th consecutive quarter of additional bitcoins added to our balance sheet. “
For its part, the MSTR share continues to evolve in relative correlation with the BTC price. In recent weeks, the share price has risen from $440 to $717, continuing its upward trend after a temporary correction :
MicroStrategy share price in weekly chart
As Michael Saylor continues his pro-Bitcoin tweets, regardless of market sentiment, a few days ago he indicated that MicroStrategy was “a Bitcoin development company”. Earlier this week, he also invited investors to take a step back, observing that the asset was “still worth less than $0.05 million”:
The price of $BTC is still less than $0.05M.
– Michael Saylor⚡️ (@saylor) February 12, 2024
On the occasion of BTC’s recent upward leg, MicroStrategy’s latent profit on its position amounts to $3.5 billion, while its average purchase price of the asset is $31,224.
