MicroStrategy’s Shares Up 122% YTD as Bitcoin Hovers Near $30k

MicroStrategy’s stock is trading at $325.5 per share, bringing its year-to-date (YTD) gains to 122%. The firm is the largest corporate holder of Bitcoin, which recently crossed the $30,000 threshold amid reignited institutional demand. MicroStrategy’s average price for its 140k bitcoin holdings is approximately $29,803.

MicroStrategy’s BTC Holdings Turn Profitable

Shares of MicroStrategy, the business intelligence firm founded by Bitcoin maximalist Michael Saylor, have soared roughly 122% in 2023. The surge is driven by a remarkable recovery in the price of Bitcoin, in which MicroStrategy holds the largest corporate stake.

When writing, MicroStrategy’s shares were trading at $325.5, slightly down at the Thursday market opening. At the beginning of the year, the stock stood at $145.02 per share. MicroStrategy’s market cap year-to-date doubled from $1.72 billion to $4.29 billion. 

Despite Bitcoin’s woes last year, MicroStrategy continued making aggressive bets on the world’s leading crypto coin. Its last Bitcoin purchase was disclosed on April 5, when the firm acquired 1,045 BTC, propelling its total holdings to 140,000 BTC, worth $4.23 billion at current prices.

In its Q1 report published in May, MicroStrategy revealed an $18.9 million loss on its Bitcoin holdings. However, with the latest price surge to $30,246, the firm’s BTC holdings have become profitable. Bitcoin’s price is up more than 81% year-to-date.

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BTC Surges Past $30,000 Amid Growing Institutional Interest

On June 21, Bitcoin finally reclaimed the $30,000 price level, driven by a newly-formed hype around spot Bitcoin exchange-traded funds (ETFs). Earlier this week, the largest global asset manager BlackRock filed to launch a spot Bitcoin ETF. This move was mimicked by several other traditional finance (TradFi) players, including Invesco, WisdomTree, and Valkyrie Investments. 

If approved, regulated spot Bitcoin ETFs managed by Wall Street giants such as BlackRock could bring fresh institutional interest in crypto. Such a scenario would drastically improve investor sentiment toward BTC and drive its price further.

In the meantime, the US regulators continue to cling down on independent digital asset exchanges and crypto-related firms, with the US Securities and Exchange Commission (SEC) leading the charge.

At what price level do you think Bitcoin will end the year, given the renewed institutional demand? Let us know in the comments below.