MicroStrategy’s Position Now in Profit as BTC Holds Above $30k
Bitcoin (BTC) rose over 2% on Monday to more than $30,600, leading to a premarket uptick in shares of MicroStrategy (NASDAQ: MSTR), the cryptocurrency’s biggest corporate holder. Notably, due to today’s upturn in Bitcoin’s price, MicroStrategy’s BTC investment is now in the green.
Bitcoin Jumps on ETF Hype, MSTR Stock Follows Suit
Shares of MicroStrategy climbed over 3% in premarket trading Monday after the price of Bitcoin reached an intraday high of $30,925 before slightly retreating to $30,673. Bitcoin is now up around 10% in the past week, marking its sharpest advance since June. The latest upswing comes as traders increasingly bet on the potential approval of the first spot Bitcoin ETF in the US.
The approval of such a product would represent one of the biggest developments for Bitcoin and the broader crypto sector as it would likely expand institutional inflows into the cryptocurrency. Several high-profile Wall Street firms applied to launch a spot BTC ETF, including BlackRock, Fidelity Investments, and Cathie Wood’s Ark Invest.
The renewed optimism was also felt among MicroStrategy investors. The business intelligence firm founded by Michael Saylor is the biggest corporate holder of Bitcoin, holding more than 158,000 coins. The company’s aggressive Bitcoin acquisition strategy significantly increased the correlation between its stock and the crypto asset’s price.
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MicroStrategy’s Bitcoin Investment Now Profitable
MicroStrategy’s latest investment into Bitcoin was unveiled in late September when the firm bought 5,445 BTcs for around $150 million. The move propelled MicroStrategy’s aggregate purchase price of around $4.68 billion, at an average price of $29,582 per coin.
With Bitcoin crossing the $30,000 mark in the past week, MicroStrategy’s staggering investment in the pioneer cryptocurrency turned profitable for now. At its current price, the company’s investment in BTC is in the profits by around $1,000 per bitcoin or $160 million in total gains.
Going forward, it is more likely than not that MicroStrategy will continue accumulating its BTC holdings. Earlier this year, the software vendor said it may raise up to $750 million by selling more of its shares and use those proceeds to purchase Bitcoin, among other things.
Despite potential headwinds, MicroStrategy will continue buying BTC aggressively in the coming years? Let us know in the comments below.