MicroStrategy: Bitcoin Trust returns to profit

The MicroStrategy Trust led by Michael Saylor is back in profit after Bitcoin’s latest leg up that took the crypto to over $30,000.

The company continues its strategy of accumulating Bitcoin through DCA, the last purchase of which was on 5 April 2023. Should Bitcoin continue its rally, MicroStrategy would record sky-high profits.

Full details below.

Bitcoin flies and the MicroStrategy Trust returns to profit

After Bitcoin’s latest rally, MicroStrategy’s Trust, focused precisely on holding the industry’s leading cryptocurrency, is back in profit by about $16 million, obviously without realizing any gains.

As of 15 June, Bitcoin has risen nearly 20% in prices, bringing out positive sentiments in the market with growth in both the MicroStrategy Trust and MSTR shares.

The latter are up about 19% in the past five days, following more or less linearly the trend of digital gold.

Michael Saylor applies a Bitcoin accumulation strategy to his MicroStrategy Trust that involves recurring purchases over the course of months.

A total of 28 buy transactions have been undertaken by the trust since 14 September 2020, with the last one dated 5 April 2023.

The average purchase price is $30,129 per BTC, with a total of 140,000 coins held within its portfolio.

MicroStrategy’s executive chairman is a true Bitcoin maximalist: he does not invest in any other cryptocurrency, believing that there will only be a future for the first cryptocurrency by capitalization and a few others.

In this regard, he recently said that if US regulators continue to strangle the market with tyrannical regulations, BTC could achieve up to 80% dominance over other cryptocurrencies.

Over the past few days alone, Bitcoin’s dominance index has returned to 50% after being below for two years, letting the world know who is really in charge.

We remain awaiting the next purchase by the MicroStrategy Trust, which will of course be proudly communicated on Twitter by its commander.

The companies and entities with the most Bitcoin on their balance sheet after the MicroStrategy Trust

Through its trust, MicroStrategy represents the largest public company in the world to hold the most Bitcoin on its balance sheet, with a figure that totals 140,000 coins.

Other public companies that hold BTC as holdings include the names of Marathon Digital, with a number of digital tokens amounting to 12,258 corresponding to a countervalue of $368 million, and Tesla Inc. with 10,725 Bitcoin amounting to $322 million.

Last year, Elon Musk‘s car company could boast of a larger balance sheet, but in July 2022 it decided to liquidate 75% of its positions, recording a loss of $140 million.

At the moment, there are no rivals to the MicroStrategy Trust, with the remainder of the public companies, whose finances are known due to transparency requirements on their equity, holding Bitcoin amounting to less than 10,000 units.

However, among these we find well-known names within financial marketplaces such as Hut 8 mining, Coinbase Global, Galaxy Digital, Block, and Riot Platform.

It is worth noting that most of these companies operate in the cryptocurrency mining industry and all are based in the United States.

There are actually entities that outnumber MicroStrategy in terms of BTC holdings, but these are not companies, but rather national governments.

Specifically, according to data from “buybitcoinworldwide,” the Chinese government holds 194,000 Bitcoin worth more than $5.8 billion.

Analyzing Glassnode‘s metrics instead, we can see that the US government owns 205,514 BTC worth $6.165 billion.

Then there is one particular entity that is very close to the number of BTC held by MicroStrategy’s trust. We are talking about the trustee of MT.Gox i.e., the trust that manages the assets confiscated from the failed cryptocurrency exchange in 2014.

In total it holds 137,890 BTC.

Focus on the price of Bitcoin

Bitcoin has been flexing its muscles in recent days, bringing some oxygen to the MicroStrategy trust that had been posting unrealized losses for 65 days.

If we then disregard the period from 11 to 19 April 2023, where BTC marked a local top in the $30,000 area, we note how Saylor‘s investment trust had been making losses for about 1 year.

Following the news in which Blackrock applied a formal request to set up a spot Bitcoin ETF, the cryptocurrency showed flames and heat with significant price and volume increases.

From this point on, there’s a real showdown for whether the bull market returns or the bear market continues another 6-18 months from now.

If BTC manages to break the $31,000 resistance it could probably continue to rise in the short term, with subsequent bull and bear clashes in the $32,000, $35,000, and $40,000 areas.

Conversely, should BTC be pushed back from the $30,000 area we could expect a slow decline to the $22,000 area or below.

At the moment what is worrying is the RSI index, which is approaching on a daily basis an overbought zone, in an overall context in which we can observe a bearish divergence between early 2023 values and current values.

However, if we instead analyze the data on a weeks basis, such an anomaly does not occur.

Among the indicators that indicate positive factors we find the “supertrend” that signals the beginning of a leg up on a daily time frame for Bitcoin, which began on 20 June.

In addition, the cluster that has formed over the past two days in the 30k area bodes well for a bullish continuation of the trend.

All eyes are on prices over this weekend and on Monday’s opening values.