Microstrategy, the leading corporate holder of Bitcoin, is witnessing a substantial surge in its Bitcoin holdings, with unrealized gains exceeding $100 million.
A Rapid Change of Fortune
In a significant turnaround, Microstrategy’s Bitcoin holdings, previously in the red when Bitcoin was trading at under $16,000, are now firmly in the green. This transformation has occurred over the past 11 months, reflecting the surging value of Bitcoin.
Unrealized Profits Soar
As reported by the International Business Times, once Bitcoin’s price surpassed the $30,000 mark, the unrealized gains for Microstrategy and its subsidiaries exceeded a staggering $174 million. This remarkable achievement is linked to their average holding of 158,245 BTC, which translates to approximately $4.82 billion in today’s market.
Precise figures extracted from Microstrategy’s September regulatory filing revealed that the entire stash of 158,245 Bitcoins was acquired for around $4.68 billion, with an average purchase price of roughly $29,582 per Bitcoin.
A Strategy of Accumulation
Microstrategy continues its strategic approach of holding and acquiring more Bitcoin. In September, the corporation invested an additional $147 million in Bitcoin, strengthening its commitment to cryptocurrency.
Microstrategy’s CEO, Michael Saylor, shared his perspective in August, stating,
“Our goal is to accumulate as much Bitcoin as we can on behalf of our shareholders.”
He hinted at the possibility of selling shares to fund further Bitcoin acquisitions. Saylor emphasized their leveraged long strategy, which offers a yield without charging fees, while actively managing their position and acquisitions through equity, debt, and cash flows to maximize shareholder value.
A Rosy Outlook
With Bitcoin reaching a new local high of approximately $31,000 early this Monday and Microstrategy’s shares comfortably trading at $348, the future appears promising for Michael Saylor and his company as they look ahead to 2024.