MicroStrategy has been making profits since June 21 on its $4 billion bitcoin (BTC) bet. It happened when the value of the cryptocurrency exceeded the average purchase price of the firm which is $29,803. This is the first time in nearly two months, as data from CryptoSlate indicates.
What profits for MicroStrategy on bitcoin?
MicroStrategy holds nearly 140,000 BTC tokens, according to a May 1 filing with the U.S. Securities and Exchange Commission. He bought them at an overall price of $4.17 billion. This makes an average purchase price of around $29,803 per token. With the price of Bitcoin hovering and holding slightly above $30,245, the tokens held by the firm are now worth over $4.2 billion. To make a difference, the company sits on pmore than $30 million in profits unrealized on its investment.
There seems to be renewed interest from several institutional investors. We suspected besides that the bitcoin price increases observed these times are due recent actions taken by these investors. BlackRock, WisdomTree, and Invesco, for example, have introduced spot bitcoin ETF applications. These companies are not alone.
The company believed in Bitcoin
Despite numerous SEC attacks on crypto companies, Michael Saylor, Executive Chairman of MicroStrategy continued to believe in Bitcoin. He thinks Bitcoin’s dominance in the market which is around 45% could reach 80% in the long term. This could happen if regulators continue their crackdown on other cryptocurrencies.
On Twitter, he set himself up as a true defender of Bitcoin, presenting the king of crypto-currencies as a means of preserving wealth. According to him, this is a good way to fight against political volatility and the depreciation of the currency.
Several firms adopt the same strategies as MicroStrategy with regard to Bitcoin. The company allows investors to gain indirect exposure to Bitcoin by buying its shares. But, wouldn’t it be better for a company to buy Bitcoin directly?
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