At the time of writing, Bitcoin was trading at $30,139, above MicroStrategy’s average purchase price of $29,803.
On paper at least, MicroStrategy’s bitcoin holdings are in the black due to the recent crypto market rally. Bitcoin was trading at $30,103 at 4:40 a.m. EST, an increase of 1.6% over the previous ten hours, according to data provided by Binance via TradingView. Year-to-date, the cryptocurrency is up 82% and recently recorded its highest quarterly increase in two years. Bitcoin’s ascent has been linked to the possibility of interest rate hikes reaching their peak amid banking duress in the United States and Europe.
The price increase has caused Bitcoin to surpass MicroStrategy’s average purchase price of $29,803. The company is technically in the black, but only by a few hundred dollars, which is a modest safety. Since the company possesses so much bitcoin, selling it in a brief period of time would likely cause a significant price decrease. This indicates that the company could not yet sell all of its Bitcoin for a profit, even if it wanted to.
Since June of last year, MicroStrategy’s Bitcoin holdings have been in the negative. At the time, the failures of crypto lender Celsius and crypto hedge fund Three Arrows Capital accelerated the decline of the markets. During this period, the Federal Reserve of the United States increased interest rates to combat soaring inflation.
Recent Bitcoin purchases have decreased the average purchase price of MicroStrategy. MicroStrategy added 1,045 bitcoin on April 5 after announcing on March 27 that it had acquired 6,455 bitcoin.
The Block Research data indicates that MicroStrategy and its subsidiaries possess approximately 140,000 bitcoins with a total purchase price of approximately $4.17 billion.
The company’s shares have increased 114% year-to-date, outperforming Bitcoin, and are trading at $312.78 per share.
