With its recent purchase, MicroStrategy has increased its Bitcoin holdings to 193,000, continuing to invest heavily in the famous crypto asset.
MicroStrategy is a business intelligence and analytics company that offers software and services to help organizations analyze data and make informed business decisions.
In addition to its core business, MicroStrategy has gained attention in the financial world for its significant investment in Bitcoin, making it one of the most prominent corporate holders of the cryptocurrency.
The company has recently gone on a shopping spree for further BTC tokens, continuing its focus on increasing its Bitcoin portfolio, which is one of the focal points of interest in its business strategy.
The company recently acquired an additional 3000 bitcoins, which increased the size of its total BTC holdings to 193,000, which is commendable.
The company follows the roadmap its former CEO, Michael Saylor, set for MicroStrategy. He has been famously linked with Bitcoin as one of its strongest proponents, who has always praised its potential in the market and the overall financial market.
In a recent post on his personal X (formerly Twitter) profile, the founder and ex-CEO of MicroStrategy announced that the company had purchased an extra 3,000 Bitcoins for around $155 million at an average price of $51,813 per bitcoin.
The acquisition brings MicroStrategy’s total bitcoin holdings to 193,000 BTC, obtained at an average price of approximately $31,544 per bitcoin.
To put into perspective how profitable this venture has been for MicroStrategy as of now, let’s look at the numbers:
To calculate the profit MicroStrategy has made on its Bitcoin holdings, given the trading price of $61,258 per Bitcoin (at the time of writing), you would subtract the average purchase price per Bitcoin from the current trading price and then multiply that difference by the total number of Bitcoins they own.
So, the profit per Bitcoin would be:
$61,258 − $31,544 = $29,7146
And then, to find the total profit for MicroStrategy’s holdings of 193,000 BTC:
$29,714 × $193,000 = $5,734,702,00029,714
Therefore, MicroStrategy’s current profit from its Bitcoin holdings would be approximately $5.73 billion. Remember that this figure is subject to change as we consider the current value of Bitcoin at the time of writing, and this value is subject to change at any time.
Therefore, we urge our users to take this estimated profit figure cautiously and stay updated on the fluctuating value of Bitcoin, as it could change rapidly and impact the calculated profit accordingly.
The figures also point out that the total valuation of MicroStrategy’s current BTC holdings amounts to approximately $11 billion if you factor in the current price of 1 BTC.
MicroStrategy’s actions highlight that the firm follows the guidelines of a famous quote we have heard several times in crypto: “Bitcoin is the hedge against inflation.”
Their practices also indicate that they firmly believe in the investment potential of Bitcoin and how it can prove instrumental in improving their overall financial portfolio. This is why they are investing heavily in it, as they find it the most suitable option to diversify their investment portfolio.
MicroStrategy has adopted a strategic approach of holding Bitcoin as a primary asset in their treasury reserve, showcasing their confidence in its future value.
While speculative, this strategy demonstrates the firm’s belief in Bitcoin’s long-term growth potential. The company’s stance serves as a noteworthy endorsement of Bitcoin’s attractiveness as an investment, potentially influencing other buyers.
However, their significant acquisitions may also affect market dynamics, impacting Bitcoin’s price and accessibility for other investors. The approach could inspire similar strategies among other corporate entities, potentially fostering greater mainstream acceptance and institutional investment in Bitcoin.
Therefore, as we have always mentioned, you should not give in to the hype and do your due diligence before investing in cryptocurrency.
