MicroStrategy’s Bitcoin Strategy Pays Off
Shares of MicroStrategy, a Bitcoin-focused enterprise business firm, closed above $500 on Black Friday, reaching a high point not seen since December 2021. The company’s market cap is now at $7.33 billion. MicroStrategy has proven its winning strategy of holding Bitcoin as a hedge against inflation. Its founder and chairman, Michael Saylor, started buying the cryptocurrency in August 2020.
In an interview with CNBC, Saylor expressed optimism about the future of Bitcoin, stating that demand will increase while supply contracts, which is unprecedented in Wall Street history.
Bitcoin Holdings and Earnings Report
In April, MicroStrategy’s Bitcoin holdings turned profitable as the price of the cryptocurrency rose above $30,000. The company further increased its holdings by purchasing an additional 1,045 Bitcoin. This brought the average purchase price down to $29,803 per coin.
In its second-quarter earnings report, MicroStrategy reported a $24 million Bitcoin impairment charge but remained profitable as a company. It continued to buy BTC and now holds 152,800 coins worth approximately $4.4 billion.
Outperforming Bitcoin
Companies with exposure to Bitcoin performed even better than the cryptocurrency itself. Despite posting a net loss of $143.4 million in its most recent quarterly report, MicroStrategy continued to buy Bitcoin, acquiring another 6,067 coins for $167 million. The company now holds around 0.75% of Bitcoin’s total circulating supply.
Hot Take: MicroStrategy’s Bold Move
MicroStrategy’s decision to invest heavily in Bitcoin has paid off handsomely. As one of the largest institutional holders of the cryptocurrency, the company has seen its stock price soar and its market cap reach new heights. With its optimistic outlook for the future of Bitcoin, MicroStrategy’s bold move has positioned it as a leader in the crypto space. As demand for Bitcoin rises and supply tightens, MicroStrategy is well-positioned to continue reaping the rewards.
By
By
By
By
By