Bitcoin holdings of MicroStrategy have turned profitable as the cryptocurrency’s price surged towards $31,000 on Monday. This comes after the company experienced losses in late 2022 when Bitcoin slumped nearly 80% from its peak. However, recent catalysts such as a spot exchange-traded fund (ETF) and an upcoming halving event have significantly boosted their fortunes, resulting in a near-doubling of the price this year.
MicroStrategy’s Bitcoin Purchases
Michael Saylor, the executive chairman of MicroStrategy and a prominent Bitcoin supporter, has been actively purchasing the digital currency. The company has only sold once, in December 2022, when they sold 708 bitcoins for $11 million. Their most recent known purchases were made in September 2022, adding 5,445 bitcoins for just under $150 million.
MicroStrategy currently holds 158,245 bitcoins, making them the largest institutional holder by a significant margin. Their holdings have a total gain of roughly $160 million at the current price of $30,650.
Future Bitcoin Purchases
There are indications that MicroStrategy may continue buying more Bitcoin. In August, the company announced plans to raise up to $750 million through stock sales, with the intention of using some of the proceeds to purchase more Bitcoin.
Bitcoin’s Performance and Market Catalysts
The recent surge in Bitcoin’s price can be attributed to several factors, including the approval of a spot ETF and the anticipation of an upcoming halving event. A spot ETF allows investors to gain exposure to the cryptocurrency without having to hold it directly, which has attracted more institutional investors to the market.
The upcoming halving event, which is expected to occur in 2024, will reduce the rate at which new bitcoins are created. This reduction in supply typically leads to an increase in the price of the cryptocurrency, as seen in previous halving events.
MicroStrategy’s Role in the Bitcoin Market
As the largest institutional holder of Bitcoin, MicroStrategy’s actions have a significant impact on the market. Their continued investment in the cryptocurrency has not only increased their own holdings but has also helped to bolster confidence in the digital asset among other investors.
By actively purchasing Bitcoin and holding onto it, MicroStrategy is demonstrating a long-term commitment to the cryptocurrency. This has encouraged other companies and investors to consider adding Bitcoin to their portfolios, further driving up demand and prices.
Conclusion
In conclusion, MicroStrategy’s Bitcoin holdings have turned profitable due to the recent surge in the cryptocurrency’s price. The company’s commitment to investing in Bitcoin has played a role in boosting market confidence and attracting more institutional investors.
With the approval of a spot ETF and the upcoming halving event, the future looks promising for Bitcoin and its investors. As the largest institutional holder of the cryptocurrency, MicroStrategy is well-positioned to benefit from these developments and may continue to increase their Bitcoin holdings in the future.
