MicroStrategy profits off of their 140,000 Bitcoin investment as its price exceeds $30,000

MicroStrategy, a business intelligence company based in Virginia, USA, has been making headlines for its massive investment in Bitcoin. In 2020, the company invested $1.1 billion in the cryptocurrency, buying 70,000 Bitcoins at an average price of $15,964. Since then, the price of Bitcoin has surged, reaching a new all-time high of over $64,000 in late 2021 before experiencing a significant drop. However, as of April 11th, 2023, the price of Bitcoin has rebounded, hitting $30,000, and MicroStrategy is now profiting on its investment.

According to a Bloomberg report, MicroStrategy’s investment in Bitcoin is now worth around $4.2 billion, with the company holding a total of 140,000 Bitcoins. The report cites data from CoinMarketCap, which shows that the cryptocurrency has risen by over 88% since the start of the year, and by more than 35% in the last month alone.

In the days following Bitcoin’s all-time high of more than $69,000 on November 10, 2021, the Crypto Fear and Greed Index rose to a score of 68 on March 21, its highest level since November 16, 2021. The index’s continuous high scores imply that market sentiment about Bitcoin and the wider cryptocurrency market is upbeat.

MicroStrategy’s CEO, Michael Saylor, has been a vocal advocate of Bitcoin, calling it a “digital gold” that is superior to fiat currencies. He has also been urging other companies to follow MicroStrategy’s lead and invest in the cryptocurrency. Saylor has said that he sees Bitcoin as a hedge against inflation and a way to preserve wealth over the long term.

MicroStrategy’s investment in Bitcoin has not been without controversy. Some investors have criticized the move, arguing that the company’s focus should be on its core business rather than on speculative investments. Others have raised concerns about the volatility of the cryptocurrency and the potential risks of holding a large amount of it on the company’s balance sheet.

Despite the criticism, their bet on Bitcoin appears to be paying off. The company’s share price has risen by more than 400% since it announced its first Bitcoin purchase in August 2020. MicroStrategy has also been using the cryptocurrency to pay some of its vendors, becoming one of the first publicly traded companies to do so.

In conclusion, MicroStrategy’s investment in Bitcoin is now proving to be highly profitable, as the price of the cryptocurrency continues to climb. While some investors remain skeptical about the risks associated with the investment, the company’s CEO remains optimistic about the long-term prospects of Bitcoin. It remains to be seen how other companies will respond to MicroStrategy’s example, but for now, the business intelligence company is reaping the rewards of its bold move.

Source:

Pan, D., and Hajric, V. (2023), Bloomberg – MicroStrategy’s Bitcoin Bet Is Profitable Again After Price Surge, https://www.bloomberg.com/news/articles/2023-04-11/microstrategy-s-bitcoin-btc-bet-is-profitable-post-30-000-market-rally (Access Date: 2023-4-11).

Original link: Crypto Nook