Michael Saylor’s bet is starting to pay off. Despite all the criticism he had to face since early 2022, MicroStrategy’s $4 billion investment in Bitcoin has become profitable.
Good news for MicroStrategy
Shares of MicroStrategy (MSTR) are up around 7%, following almost an 8% increase on Monday. The current upswing is boosted by Bitcoin’s jump above $30,000, showing a high correlation.
Microstrategy’s stock chart, source: google.com
MSTR stock is up 131% so far this year, outperforming Bitcoin, which is up around 85% in 2023. The company continues to accumulate Bitcoin although it already has a portfolio of approximately 140,000 bitcoins.
Bitcoin daily chart, source: tradingview.com
MicroStrategy purchased 6,455 BTC in late March and bought an additional 1,045 BTC in early April, with an average price of $29,803 per Bitcoin. With Bitcoin being $30,142 at the time of the writing, this makes their multi-billion dollar crypto investment profitable.
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That means one out of every 151 bitcoins is owned by the firm, giving them a 0.66% stake in the total Bitcoin supply of 21 million. Michael Saylor, a former CEO of Microstrategy, is a vocal advocate for Bitcoin due to his belief that it is the safest and most trustworthy store of value currently available.
The company has incorporated a dollar cost averaging (DCA) strategy to gain a better entry and avoid timing the market. The total value of the company’s investments is about $4.17 billion, but MicroStrategy is just up 1%.
If Bitcoin manages to return to the all-time high (ATH) level of $69,000, MicroStrategy will have an open profit of 133%, or more than $5.5 billion. That would mean their Bitcoin holdings would be worth close to $10 billion when Bitcoin reaches ATH.
— Michael Saylor⚡️ (@saylor) April 11, 2023