The Rise of Bitcoin and MicroStrategy’s Success
Recently, the cryptocurrency industry has seen a surge in growth, with increased capital inflow leading to Bitcoin crossing various price resistances, including a brief rise over the $37,000 level. MicroStrategy is a key public company that has capitalized on this price surge.
MicroStrategy has reaped significant benefits from its bold move of investing in the world’s largest cryptocurrency. The company has realized over $1 billion in profit due to Bitcoin’s 36% increase since October 13, along with a simultaneous 55% surge in its shares.
MicroStrategy’s Successful Bitcoin Strategy
MicroStrategy began buying Bitcoin in 2020 and made another acquisition in October amid the rising investment trend. This latest purchase saw the company acquiring an additional 155 BTC for $5.3 million, bringing its total BTC holdings to 158,245 at an average total value of $4.68 billion.
With Bitcoin’s current price at around $36,500, MicroStrategy’s BTC investment is now worth over $5.77 billion, representing an unrealized 26% return of $1.1 billion in approximately three years.
The company’s investment in Bitcoin has significantly boosted its stock price performance, surpassing many other stocks and assets since adopting its Bitcoin strategy. Its share price has soared by 242% from the year’s open price of $145.
At present, MicroStrategy shares are trading at $497, and CEO Michael Saylor attributes this growth largely to their innovative Bitcoin strategy.
Bitcoin Investments Across Public Companies
MicroStrategy is not alone in holding Bitcoin on its balance sheet. Various public companies now collectively own 239,494 BTC, which accounts for 1.23% of the total supply. Marathon Digital, Galaxy Digital, and Tesla are among these companies, holding 13,286, 12,545, and 10,500 BTC respectively.
Hot Take: The Future of Bitcoin Investments
The success of MicroStrategy’s bold Bitcoin investment strategy reflects the growing trend of public companies diversifying their holdings with cryptocurrency investments. With this trend likely to continue as more companies recognize the potential benefits of such investments for their balance sheets and share prices.
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