MicroStrategy’s (MSTR) bitcoin (BTC) holdings have once again been profitable as the cryptocurrency’s price has risen to around $31,000 on Monday morning.When bitcoin fell about 80% from its peak in November 2021, the company’s hoard was severely undervalued in the latter part of 2022. However, events like the impending halving event and the release of a spot ETF helped turn things around, resulting in a nearly doubling of the price this year.
Michael Saylor, who was once MicroStrategy’s CEO and is currently its executive chairman, has developed into one of the cryptocurrency’s most ardent backers and is still a frequent buyer.The only sale his company has made thus far is a 708 bitcoin deal that was valued at $11 million in December 2022.
The corporation added 5,445 bitcoins for slightly under $150 million, or an average price of $27,053 apiece, in the weeks leading up to September 24 of this year. These transactions were the most recent ones that are known to the public.This increased MicroStrategy’s total bitcoin holdings to 158,245 at an average price of $29,582 apiece, or an approximate purchase price of $4.68 billion.
With a gain of about $160 million at the current price of $30,650, the bitcoin wager is profitable at around $1,000 per coin.According to data from Bitcoin Treasuries, the corporation owns 158,245 bitcoins, which is over 14 times more than the next closest institutional holder.
Moreover, MicroStrategy may be purchasing much more.The business announced in August that it could sell up to $750 million worth of stock in order to acquire funds, with the intention of using some of the profits to buy bitcoin.