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MicroStrategy’s Profit Hits $5.7B High – Crypto News

Published

2 years ago

February 28, 2024

Dripp

With the current rally in Bitcoin price, Michael Saylor’s MicroStrategy is definitely one of those firms counting their unrealized profit in billions of dollars.

Ongoing Market Rally Sends MicroStrategy’s Profit to the Roof

Over the years, the popular business intelligence and software firm has maintained a Bitcoin strategy that has left many observers awestruck. MicroStrategy has continued to acquire Bitcoin not minding the price of the coin at any time. Recently, the company announced a new acquisition of Bitcoin which ran to the tune of millions.

According to MicroStrategy’s new filing with the United States Securities Exchange Commission (SEC), between February 15 and 25, an additional 3,000 Bitcoin units were purchased for $155.4 million. The recent acquisition was made at an average price of approximately $51,813 per BTC. This increased its total Bitcoin holding to 193,000 units, acquired at about $6.09 billion at an average price of $31,544 per Bitcoin.

Today, Bitcoin price is at around $61,113, bringing the value of MicroStrategy’s Bitcoin holding to a total volume of $11.7 billion. Considering the estimated value of its holding in relation to the present Bitcoin price, the business intelligence software company has a total unrealized profit of $5.7 billion.

One would expect that this is a good time for MicroStrategy to sell its holdings, however, it does not look like the firm would bulge any time soon. Plus, Saylor had earlier said that there is “no reason to sell the winner and buy the losers,” a statement that suggests that the company won’t be selling its Bitcoin holding any time soon.

Bitcoin Price Poised for Mega Rally Post-Halving

As for the leading cryptocurrency, the positive momentum that it is currently displaying may be the beginning of a bullish run. Market experts are speculating that the flagship cryptocurrency will soar as high as $273,000 after the much-anticipated Bitcoin halving event.

It was recently discovered that the daily Bitcoin demand is already about 13x the daily miner production. Considering the fact that the halving event will cause a slash in the total supply of the coin, Bitcoin price will probably skyrocket as demands will further exceed supply.

The growing adoption of spot Bitcoin ETFs will also play a path in pushing the price of Bitcoin towards a new all-time-high (ATH) as it complements the demand side with multiple institutions looking to gain exposure to the asset class through the ETF products.