MicroStrategy’s Bitcoin Gains Soar 30%, Netting $1.6B on $5.314B Bet

B. Ali
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MicroStrategy, a business tech and cloud services company listed on Nasdaq as “MSTR,” recently made a savvy move by increasing its bitcoin investments by over 30%. They invested $5.314 billion in Bitcoin, and thanks to the cryptocurrency’s value rising above $39,000, their Bitcoin stash is now worth $6.915 billion, resulting in a handsome profit of $1.601 billion.

MicroStrategy currently holds a staggering 174,530 BTC, making them the second-largest Bitcoin holder globally, trailing only behind governments and Grayscale’s GBTC product. This substantial Bitcoin ownership has significantly boosted MicroStrategy’s overall value, positioning them as champions in a game where Bitcoin is the sought-after prize.

Therefore, this move highlights how involvement in Bitcoin can greatly enhance a company’s overall value, akin to amassing the most gold in a valuable treasure hunt.

MicroStrategy’s Strategic Bitcoin Investment: Turning $5.314 Billion into $6.915 Billion Profits

MicroStrategy made a clever investment move by putting $5.314 billion into Bitcoin, acquiring it at an average cost of $30,252 per Bitcoin. The current value of their Bitcoin holdings has risen to $6.915 billion, resulting in a significant profit of $1.601 billion. Their smart strategy involved consistently buying Bitcoin at various prices, leading to an impressive 30.12% return on investment.

If we consider what they might have earned with Ethereum (ETH) instead of Bitcoin, the analysis becomes intriguing. MicroStrategy’s adept play in the Bitcoin game is evident in their substantial profits, showcasing the success of their strategy compared to alternative options like Ethereum.

If MicroStrategy had chosen Ethereum (ETH) instead of Bitcoin, they would now be holding a massive 4,264,829 ETH, valued at an impressive $9.245 billion. This strategic move could have yielded a substantial profit of 74%, totaling a remarkable $3.931 billion. Moreover, if they earned extra money through staking Ethereum, like putting it to work to earn interest, an additional $869.4 million could be added to their yearly profits.

In this hypothetical scenario, MicroStrategy’s total value, considering Ethereum gains and staking benefits, could reach an astounding $10.114 billion. However, MicroStrategy remains fully committed to Bitcoin, with CEO Michael Saylor staunchly asserting its superiority in the crypto world. Currently, their significant Bitcoin assets contribute significantly to Grayscale’s Bitcoin Trust, underscoring their unwavering focus on Bitcoin compared to alternative options.

MicroStrategy’s Impressive Stock Surge Amid Market Rankings

MicroStrategy’s stock has shown impressive growth, surging by 167% in the past year and a remarkable 262% since the beginning of the year. In the last month alone, its shares increased by 22%. Despite this strong performance, MicroStrategy’s overall size in the market is relatively modest, ranking as the 1,768th largest globally.

To put it in perspective, Bitcoin, a popular cryptocurrency, holds the 11th spot in global market valuation, just below Warren Buffet’s company, Berkshire Hathaway. This highlights that, while MicroStrategy has experienced significant growth, it remains relatively smaller in the broader market compared to cryptocurrencies like Bitcoin and major companies like Berkshire Hathaway.

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.