Microstrategy Reaps $1.6 Billion from Bitcoin Investment

Microstrategy, a leader in business intelligence, mobile software, and cloud-based services, has achieved remarkable success with its Bitcoin investment. The company’s strategic move into cryptocurrency has yielded a significant profit, showcasing the potential of digital assets in modern investment portfolios.

Having invested $5.314 billion in Bitcoin, Microstrategy’s current holdings are valued at an impressive $6.915 billion. This represents a substantial profit of $1.601 billion, marking a 30% increase in the value of their investment.

Microstrategy (Nasdaq: MSTR) gained this substantial growth following a surge in bitcoin’s (BTC) value, surpassing the $39K mark. The company currently holds the title of the largest bitcoin holder among public and private entities, second only to governments and specific exchange-traded products like Grayscale’s GBTC. As of the latest figures, Microstrategy possesses an astounding 174,530 BTC, valued at $6.915 billion based on current exchange rates.

The company’s journey into bitcoin investment involved purchasing BTC at an average cost of $30,252 per coin. With the current valuation, the company has realized a gain of $1.601 billion, a return of 30.12%, achieved through a strategic approach to dollar-cost averaging its purchases. This success was analyzed by blockchaincenter.net’s “There Is No Second Best,” comparing Microstrategy’s BTC investment profits with a hypothetical scenario of investing in Ethereum (ETH) instead.

In an alternate situation where the company had chosen ETH, its holdings could have been 4,264,829 ETH, valued at $9.245 billion. This would have resulted in a 74% profit, totaling $3.931 billion, significantly higher than the profit from BTC investments. Furthermore, ETH’s potential income at a 4% annual percentage yield (APY) could have added approximately $869.4 million to Microstrategy’s profits.

However, Microstrategy and its CEO Michael Saylor are staunch Bitcoin supporters, famously affirming, “There is no second best crypto asset.” Microstrategy’s BTC assets constitute 27.92% of Grayscale’s Bitcoin Trust holdings, indicating the substantial size of their Bitcoin portfolio compared to other businesses.

The company’s stock performance has been equally impressive, with MSTR shares increasing by 167% over the past year. Since the year’s start, MSTR has seen a 262% gain, with a 22% increase in the last month alone. Regarding global market capitalization, which includes ETFs, cryptocurrencies, and precious metals, Microstrategy ranks the 1,768th largest, while Bitcoin holds the 11th highest market valuation, just below Warren Buffet’s Berkshire Hathaway.

Via: 2Usethebitcoin.com

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