MicroStrategy’s $4.6 Billion Bitcoin Bet Pays Off, Here’s How Much It’s Worth Now
November 10 2023 - 12:00PM
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The cryptocurrency industry has experienced significant growth in
recent weeks with an influx of capital. This influx of capital has
forced Bitcoin over various price resistances, with the latest
being a brief cross over the $37,000 level. MicroStrategy has
emerged as a prominent public company that has successfully
capitalized on this price push. MicroStrategy’s blockbuster bet on
the world’s largest cryptocurrency has certainly paid off so far.
The company has posted over $1 billion in unrealized profit thanks
to Bitcoin’s 36% increase from $26,750 since October 13. Shares of
MicroStrategy have also risen simultaneously, soaring more than 55%
since the same time period. MicroStrategy’s Bold Bitcoin Bet Paying
Off MicroStrategy started buying in Bitcoin in 2020 but the latest
acquisition came in October, amidst the influx of money into
Bitcoin, where the company announced it had acquired an additional
155 BTC for $5.3 million. Related Reading: Ripple IPO: Expert
Reveals Why Investors Should Be Cautious MicroStrategy now owns a
total of 158,245 BTC, acquired at an average total value of $4.68
billion. At BTC’s current price of around $36,500, MicroStrategy’s
BTC investment is now worth over $5.77 billion, representing an
unrealized 26% return of $1.1 billion in around three years. The
company’s investment in Bitcoin has also paid off on the back end
of its stock price, as it has outperformed many stocks and assets
since the adoption of its Bitcoin strategy. The share price has
shot up 242% from its open price of $145 at the beginning of the
year. At the time of writing, MicroStrategy share is trading
at $497, and Michael Saylor noted that this growth has been largely
in part to its innovative Bitcoin strategy. BTC resumes uptrend |
Source: BTCUSD on Tradingview.com BTC Putting Microstrategy On The
Map MicroStrategy’s Michael Saylor has been an outspoken proponent
of Bitcoin. Saylor’s belief in Bitcoin spearheaded MicroStrategy’s
investment in the asset, and a cursory look through his social
media page on X shows various posts promoting Bitcoin.
#Bitcoin is Coming. pic.twitter.com/5oE42SQvgC — Michael Saylor⚡️
(@saylor) November 9, 2023 Saylor recently stated, in an interview
with Fox Business, that MicroStrategy’s BTC investments were part
of a well-planned strategy to rival tech giants like Google,
Microsoft, and Apple. Related Reading: Analyst Predicts
Bitcoin And Crypto Market Crash Of Epic Proportions, Here’s When
“What we did in August of 2020 was recognize that there’s no way
we’re going to outgrow Google and Microsoft and Apple Computer as a
mid-sized software company. We realized Bitcoin is like a high-tech
dominant digital network growing at 40% or 50% a year, and so we
bought it,” he said in the interview. Saylor also expects the
demand for BTC to double in the next 12 months amidst its next
halving and the approvals of spot Bitcoin ETFs in the US.
Ultimately, he believes that the price of BTC will eventually reach
$5 million. MicroStrategy isn’t the only company with Bitcoin
on its balance sheet. Public companies now own a total of 239,494
BTC, representing 1.23% of the total supply. Marathon Digital,
Galaxy Digital, and Tesla are a few of these companies, holding
13,286, 12,545, and 10,500 BTC, respectively. Featured image from
MicroStrategy, chart from Tradingview.com
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