MicroStrategy Gains 0.03% Profit After Over 2 Years Hodl Bitcoin

Key Points:

• MicroStrategy’s investment in Bitcoin has resulted in significant gains due to renewed institutional demand.
• The company’s market value has quadrupled year to date, with over $30 million in unrealized gains from its investment.
• Michael Saylor continues to be a vocal supporter of Bitcoin and predicts that its market domination may reach 80% in the long run.

MicroStrategy disclosed its Bitcoin holdings in a May 1 disclosure to the US Securities and Exchange Commission (SEC). The overall purchase price was around $4.17 billion, with an average buying price of approximately $29,803 per coin.

In 2023, shares in MicroStrategy, the business analytics company established by Bitcoin maximalist Michael Saylor, had increased by around 122%. The stock was trading at $145.02 per share at the start of the year. The spike is being driven by a spectacular comeback in the price of Bitcoin, in which MicroStrategy has the biggest corporate position. The company is the biggest corporate holder of Bitcoin, which just surpassed the $30,000 mark due to renewed institutional demand.

MicroStrategy’s market value has more than quadrupled year to date, from $1.72 billion to $4.29 billion, with Bitcoin trading at $30,245 as of press time, and it has more than $30 million in unrealized gains from its investment, equivalent to 0.03% of earnings after over two years.

MicroStrategy reported a $18.9 million loss on its Bitcoin assets in its Q1 report, which was issued in May. But, with the most recent price increase to $30,246, the firm’s BTC holdings are now profitable. Bitcoin’s price has increased by more than 81% year to date.

Bitcoin’s recent price gains may be attributed to a flurry of spot Bitcoin ETF applications from conventional financial institutional players such as BlackRock, WisdomTree, and Invesco.

If authorized, regulated spot Bitcoin ETFs managed by Wall Street behemoths like BlackRock might spark renewed institutional interest in cryptocurrency. Such a situation would significantly boost investor sentiment toward Bitcoin and push its price higher.

Once the SEC initiated a slew of lawsuits against prominent cryptocurrency companies like Coinbase and Binance, this newfound institutional investment helped to restore market confidence.

Michael Saylor, the executive chairman of MicroStrategy, is an outspoken supporter of Bitcoin. He has also continued to make remarks on the relevance of Bitcoin on Twitter, noting its appeal to global populations seeking wealth preservation while dealing with political volatility, currency depreciation, bank instability, and counterparty risk.

Saylor recently reaffirmed his belief in the commodity, claiming that if authorities continue to clamp down on other cryptocurrencies, its market domination might reach 80% in the long run.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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