- MicroStrategy’s $425 million Bitcoin purchase is now worth $497 million following Bitcoin’s recent rise
- The company’s Bitcoin portfolio has gone from being $40 million down to $72 million up
- MicroStrategy’s timing couldn’t have been better
MicroStrategy’s Bitcoin purchase has added $72 million to the company’s balance sheet since it completed its $425 million outlay in August, helped in no small measure by the PayPal announcement yesterday. MicroStrategy bought the Bitcoin in two separate waves, with the average buy in price being just over $11,000. Bitcoin’s recent jump to $13,000 has added $72 million to its value, although of course the company hopes that this is just the start.
MicroStrategy Weather’s $40 Million Drawdown
MicroStrategy announced their first headline-grabbing Bitcoin purchase in mid-August, picking up $250 million worth of Bitcoin, to which they added another $175 million worth around a month later.
In total the company has bought ₿38,250 at a cost of $425 million, putting the average buy in price at $11,111. Bitcoin shot to $13,200 earlier this week before correcting and has since settled around the $13,000 mark, meaning each of those Bitcoin’s is worth an extra $1,889, adding $72.25 million to MicroStrategy’s balance sheet within a few short weeks.
This news is even more impressive given that the Bitcoin price dropped to $9,800 in between the two purchases, resulting in a temporary $40 million drawdown, but anyone who thought that MicroStrategy wasn’t in it for the long haul was wrong – instead of panicking, the company bought the dip magnificently, resulting in a $110 million rebound.
Strong Hands Buy the Dip
MicroStrategy have shown impeccable timing in their Bitcoin purchases, buying in after it had definitively broken the two-year bearish downtrend but before the mainstream adoption that the PayPal platform will bring.
Add in hands strong enough to not just weather a $40 million drawdown but buy the dip that caused it and you have a textbook example of a trade!