Polkadot was launched in May 2020. In a market dominated by Bitcoin and Ethereum, it quickly established itself as the next generation blockchain. The scale and interoperability problems limit Bitcoin's ability to transfer value without the assistance of
MicroStrategy’s Massive Bitcoin Stash Hits $3 Billion In Unrealized Profit
MicroStrategy recently topped up its Bitcoin holdings, bringing the company’s already enormous unrealized profit to an even greater magnitude, reaching billions of dollars. MicroStrategy’s blockbuster bet on the world’s largest cryptocurrency has certainly paid off so far. The company is now posting over $3 billion in unrealized profit thanks to an ongoing crypto market bull run led by Bitcoin.
Recent Bitcoin Price Surge Drives Massive Unrealized Profit For MicroStrategy
MicroStrategy, the business intelligence firm founded by Bitcoin bull Michael Saylor, now holds over $9 billion worth of Bitcoin. At the time of writing, MicroStrategy owns approximately 190,000 Bitcoins. Considering Bitcoin’s current circulation is 19.6 million BTC, the intelligence company now holds almost 1% of the circulating supply.
MicroStrategy started investing in Bitcoin in 2020 around the time when the crypto started to attract interest from institutional investors. The firm made its first purchase of $250 million worth of Bitcoin in August 2020 and has steadily topped up its holdings since then. According to a recent disclosure, MicroStrategy now holds 190,000 BTC acquired at a total cost of $5.93 billion, or $31,224 per Bitcoin.
On the other hand, Bitcoin has had one of the strongest advances in the crypto market in the past seven days and is now on its way to reaching the $50,000 mark for the first time in two years. At the time of writing, Bitcoin is up by 12% in the past seven days. At Bitcoin’s current price of around $48,200, MicroStrategy’s Bitcoin holdings are worth a staggering $9.1 billion, representing an unrealized profit of $3.17 billion.
How Long Can MicroStrategy’s Bitcoin Bet Pay Off?
Bitcoin has been touted as digital gold and a long-term store of value. MicroStrategy’s steady Bitcoin investment approach and its sizable stash amidst various price declines show the company’s methodical approach to determining its future trajectory.
According to Michael Saylor, the company is in for Bitcoin in the long run and isn’t planning on selling its holdings any time soon. In fact, its buying trend points to more Bitcoin acquisitions as time goes on.
In conclusion, while Bitcoin can be volatile, MicroStrategy’s pioneering investment in Bitcoin has clearly paid off so far. The company is set to benefit even more in the coming months in light of the approaching Bitcoin halving and as spot Bitcoin ETFs continue to become widespread. If Bitcoin’s bull run continues and it reaches $100,000 or higher as some analysts predict, MicroStrategy’s unrealized profits could reach tens of billions of dollars.
Featured image from Pexels, chart from TradingView
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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