This “Bitcoin permabull” corporation has accumulated a staggering 23% average unrealized gain across all of its BTC holdings.
MicroStrategy’s multibillion-dollar gamble on Bitcoin (BTC) has yielded a massive profit of more than $1 billion thanks to the cryptocurrency’s latest climb to an annual high of more than $37,000.
The leading cryptocurrency hit a record high of about $38,000 on Thursday, the first time it has been that high since May 2022. Following the demise of Terra’s algorithmic UST stablecoin and the following repercussions that impacted several crypto businesses, including FTX and Celsius, the cryptocurrency market had a dramatic decline, reaching a low of about $16,500.
With rising hopes for the establishment of a spot BTC exchange-traded fund (ETF), Bitcoin has made a stunning rebound this year, with a year-to-date gain of over 100%.
As of November 9 (the most recent day for which data is available), MicroStrategy’s investment showed a paper profit of $1.2 billion, thanks to the price increase.
During the third quarter, corporate software firm MicroStrategy spent $4.68 billion buying 158,400 Bitcoin (BTC), making it the biggest public holder of Bitcoin. The company also shared that the average amount it pays for a coin is $29,586.
The corporation managed by Michael Saylor is reaping a whopping 23% profit on each of its Bitcoins at the moment, with Bitcoin trading at $36,428.
Tradingview data shows that the company’s stock has risen by about 160% this year due in large part to the company’s exposure to Bitcoin.
MicroStrategy’s executive chair, Michael Saylor, is a vocal Bitcoin supporter who has long argued that the leading cryptocurrency represents a game-changing financial infrastructure. He thinks Bitcoin is a great long-term investment and inflation hedge because of its scarcity and decentralization.
Saylor said: “Using Bitcoin as collateral on a company’s balance sheets is a new way for companies to protect their capital and increase shareholder value. It frees companies from the damaging cycle of expensive deals, buybacks, dividends, and debt.”