Key Points
- MicroStrategy has significantly increased its Bitcoin holdings, resulting in unrealized profits exceeding $3 billion.
- MicroStrategy now owns approximately 190,000 Bitcoins, which is nearly 1% of the total circulating supply of the cryptocurrency.
- The company began investing in Bitcoin in 2020 and has consistently added to its holdings since then.
- MicroStrategy’s Bitcoin holdings are currently valued at around $9.1 billion, reflecting an unrealized profit of $3.17 billion.
- The company is committed to long-term investment in Bitcoin and has no plans to sell its holdings in the near future.
MicroStrategy recently increased its Bitcoin reserves, resulting in a significant increase in unrealized profits. The company’s successful gamble on Bitcoin, the world’s largest cryptocurrency, has so far yielded positive results. The current bull run in the cryptocurrency market, led by Bitcoin, has resulted in MicroStrategy reporting over $3 billion in unrealized profits.
Recent Bitcoin Price Surge Drives Massive Unrealized Profit For MicroStrategy
MicroStrategy, a business intelligence firm founded by Bitcoin enthusiast Michael Saylor, currently holds Bitcoin assets worth over $9 billion. As of this writing, the company owns approximately 190,000 Bitcoins. Given that the current circulating supply of Bitcoin is 19.6 million BTC, MicroStrategy now controls almost 1% of the circulating supply.
The company began investing in Bitcoin in 2020, around the same time that the cryptocurrency started attracting interest from institutional investors. MicroStrategy made its first Bitcoin purchase in August 2020, investing $250 million. Since then, the company has steadily increased its Bitcoin holdings. According to a recent disclosure, MicroStrategy now owns 190,000 BTC, acquired at a total cost of $5.93 billion, or $31,224 per Bitcoin.
Bitcoin has experienced one of the strongest advances in the cryptocurrency market over the past week and is now on track to reach the $50,000 mark for the first time in two years. As of this writing, Bitcoin’s price has increased by 12% over the past seven days. With Bitcoin’s current price hovering around $48,200, MicroStrategy’s Bitcoin holdings are valued at a staggering $9.1 billion. This represents an unrealized profit of $3.17 billion.
How Long Can MicroStrategy’s Bitcoin Bet Pay Off?
Bitcoin is often referred to as digital gold and is viewed as a long-term store of value. MicroStrategy’s steady investment in Bitcoin, despite various price declines, illustrates the company’s methodical approach to planning its future trajectory.
According to Michael Saylor, MicroStrategy is committed to Bitcoin for the long haul and has no plans to sell its holdings anytime soon. In fact, the company’s buying trend indicates that it will continue to acquire more Bitcoin as time progresses.
In conclusion, while Bitcoin can be volatile, MicroStrategy’s pioneering investment in the cryptocurrency has clearly been profitable so far. The company stands to gain even more in the coming months, given the impending Bitcoin halving and the increasing prevalence of spot Bitcoin ETFs. If Bitcoin’s bull run continues and the cryptocurrency reaches $100,000 or higher, as some analysts predict, MicroStrategy’s unrealized profits could soar to tens of billions of dollars.
Featured image from Pexels, chart from TradingView