MicroStrategy Holding Over $500 Million in Unrealized BTC Gains
MicroStrategy’s significant $BTC holdings increased in value to over $500 million in unrealized gains in the firm’s treasury just this year.
Bitcoin Strategy Paying Off
With a total cost basis for the BTC it holds on its balance sheet reported at $5.89 billion, the company, which is the world’s largest corporate Bitcoin holder, has benefitted from Bitcoin’s recent significant price rise.
MicroStrategy’s Bitcoin Investments
MicroStrategy holds 189,150 BTC valued at around $8.55 billion and has accumulated the cryptocurrency back in August 2020, with an average investment cost per BTC of around $31,165.
Michael Saylor Plan to Increase Bitcoin Holdings
MicroStrategy’s CEO, Michael Saylor, plans to increase his Bitcoin holdings, indicating his confidence in the cryptocurrency’s future, following a recent sale of his company options for $216 million.
Bitcoin’s Rally Explained
Saylor attributed the recent rally to the digital transformation of capital in an interview on CNBC’s “Closing Bell: Overtime.”
MicroStrategy’s Financing Strategy
MicroStrategy has been financing the firm’s BTC purchases by selling new shares on the market and diluting existing shareholders, and using the proceeds to buy BTC.
Hot Take
MicroStrategy is becoming one of the most powerful companies in the crypto space now that it is sitting on over $500 million in unrealized gains on its Bitcoin holdings. This shows that holding BTC has been a good investment for the company, with its strategy paying off handsomely as the cryptocurrency’s price has increased. The CEO’s confidence in Bitcoin reflects how much potential he sees in the cryptocurrency’s future. The future of companies like MicroStrategy in the cryptocurrency space looks promising as Bitcoin’s value continues to rise.
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