- The profit on MicroStrategy’s Bitcoin holding rose back above $1 billion this weekend
- The company announced a further $10 million purchase of Bitcoin on Friday
- The MicroStrategy share price has risen over fivefold since August
The profit on MicroStrategy’s Bitcoin investment rose back above the $1 billion mark over the weekend, just hours after the company announced another $10 million Bitcoin purchase. Their latest purchase came as Bitcoin dipped from $42,000 to $29,000, taking their holding to almost ₿71,000 which they have accumulated in just seven months.
MicroStrategy Adds More Bitcoin
MicroStrategy began their bitcoin-buying odyssey in August last year when Bitcoin was around $10,000, accumulating just shy of ₿70,500 across several purchases in late 2020. As the price rocketed in late 2020 so did their unrealized profits, moving into the hundreds of millions in no time and crossing the $1 billion mark when Bitcoin broke $30,000 on January 1.
As retail traders panic sold following Bitcoin’s drop from $42,000 to $29,000, MicroStrategy bought the dip in spectacular fashion, picking up another ₿314 for $10 million, taking their total expenditure on Bitcoin to $1.135 billion and their ownership to around ₿70,785:
MicroStrategy has purchased approximately 314 bitcoins for $10.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $31,808 per bitcoin. We now hold approximately 70,784 bitcoins.https://t.co/zMJSH29bmC
— Michael Saylor (@michael_saylor) January 22, 2021
Shareholders Reap Rewards
Shareholders who were initially skeptical of CEO Michael Saylor’s plan to convert a quarter of their balance sheet to Bitcoin will have been glad he was able to talk them round as the MicroStrategy share price has matched that of the Bitcoin price – it has increased more than fivefold since August, soaring from $122 before the first Bitcoin buy to $631 two weeks ago.
This increase is perhaps not surprising seeing as the dollar value of the company’s assets has risen by $1.2 billion in seven months with no outlay required apart from exchange fees. There is not one company in the world that would not kill for such a return, and Saylor’s vision and anti-establishment bias is paying off handsomely, for now at least.
