MicroStrategy Earns $3 Billion as Bitcoin Price Breaks $47k

MicroStrategy Turns into One of many Largest Winners within the Bitcoin and Crypto Bull Market

MicroStrategy Inc., a distinguished identify in enterprise software program and a key participant within the cryptocurrency market, has seen a big surge within the worth of its Bitcoin holdings. Not too long ago, Bitcoin’s worth has surpassed $47,000, a notable improve that has immediately impacted MicroStrategy’s funding portfolio. 

As of 9 Jan, 2024, MicroStrategy holds roughly 189,150 Bitcoins, almost 1% of the entire Bitcoins in circulation. The common value of those acquisitions stands at $31,168 per Bitcoin, totaling round $5.895 billion. With Bitcoin’s worth exceeding $47,000, the entire market worth of MicroStrategy’s Bitcoin property has reached about $8.89 billion, translating right into a achieve of round $3 billion.

Based in 1989, MicroStrategy has transitioned from its roots in database and enterprise intelligence software program to turning into a key participant within the digital asset house. MicroStrategy’s journey within the Bitcoin panorama started in the summertime of 2020 below the management of founder Michael Saylor, with a method targeted on accumulating Bitcoin. This method positioned the corporate as the most important Bitcoin holder amongst public corporations. MicroStrategy made its first foray into the Bitcoin market on August 11, 2020. The corporate invested a considerable $250 million of its inflation-hedging funds into buying 21,454 Bitcoins. This preliminary funding, made at a median worth of $11,882 per Bitcoin, marked a pivotal second in MicroStrategy’s method to treasury administration, reflecting its confidence in Bitcoin as a superior asset class in comparison with conventional money holdings​​.

Nonetheless, the journey wasn’t with out its challenges. Following the 2021 bull run, Bitcoin and different crypto property skilled a big worth drop. In December 2022, amidst the market volatility following the FTX chapter announcement, MicroStrategy offered 704 Bitcoins at a median worth of $16,761. This strategic sale, a departure from its preliminary “purchase and maintain” technique, was made for tax functions and aimed to generate tax advantages by offsetting capital losses in opposition to earlier positive factors​​. There have been additionally rumors about MicroStrategy’s potential chapter, partly as a result of a good portion of the funds used for Bitcoin purchases have been sourced by means of company loans.

The newest funding into bitcoin was made between November 30 and December 26, 2023. Throughout this era, MicroStrategy and its subsidiaries bought roughly 14,620 Bitcoins at a median worth of roughly $42,110, amounting to a complete funding of about $615.7 million​.

Listing of Bitcoin shopping for and promoting historical past

August 11, 2020: Bought 21,454 BTC at an average price of $11,882.

September 14, 2020: Bought 16,796 BTC at a median worth of $10,419.

December 4, 2020: Bought 2,574 BTC at a median worth of $19,425.

December 21, 2020: Bought 29,646 BTC at a median worth of $21,925.

January 22, 2021: Bought 314 BTC at a median worth of $31,808.

February 2, 2021: Bought 295 BTC at a median worth of $33,810.

February 24 – March 3, 2021: Bought 19,452 BTC at a median worth of $52,765.

March 1, 2021: Bought 328 BTC at a median worth of $45,732.

March 5, 2021: Bought 205 BTC at a median worth of $48,888.

March 12, 2021: Bought 262 BTC at a median worth of $57,146.

April 5, 2021: Bought 253 BTC at a median worth of $59,289.

Might 13, 2021: Bought 271 BTC at a median worth of $55,387.

Might 18, 2021: Bought 229 BTC at a median worth of $43,663.

June 21, 2021: Bought 13,005 BTC at a median worth of $37,617.

September 13, 2021: Bought 8,957 BTC at a median worth of $44,945.

November 28, 2021: Bought 7,002 BTC at a median worth of $59,187.

November 29 – December 8, 2021: Bought 1,434 BTC at a median worth of $57,477.

December 30, 2021: Bought 1,914 BTC at a median worth of $49,229.

January 1 – January 31, 2022: Bought 660 BTC at a median worth of $37,865.

February 15 – April 5, 2022: Bought 4,167 BTC at a median worth of $45,714.

June 28, 2022: Bought 480 BTC at a median worth of $20,817.

September 20, 2022: Bought 301 BTC at a median worth of $19,851.

November 1 – December 21, 2022: Bought 2,395 BTC at a median worth of $17,871.

December 22, 2022: Offered 704 BTC at a median worth of $16,761.

December 24, 2022: Bought 810 BTC at a median worth of $16,790.

March 27, 2023: Bought 6,455 BTC at a median worth of $28,016.

April 5, 2023: Bought 1,045 BTC at a median worth of $28,016.

April 29 – June 27, 2023: Bought 12,333 BTC at a median worth of $28,136.

July 1 – July 31, 2023: Bought 467 BTC at a median worth of $30,835.

November 30, 2023: Bought 16,130 BTC at a median worth of about $36,785​​​

Conclusion

MicroStrategy’s strategic funding in Bitcoin has led to substantial returns, significantly highlighted by the latest surge in Bitcoin’s worth. This technique has not solely been useful for MicroStrategy but in addition served as a catalyst for different corporations to contemplate incorporating digital property into their funding portfolios. Furthermore, the broader market is observing developments just like the potential approval of a Bitcoin spot ETF with eager curiosity. Such developments, if realized, may additional improve the acceptance and integration of Bitcoin and different cryptocurrencies in mainstream monetary methods, indicating a big shift within the funding panorama.

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