MicroStrategy's Bitcoin investment in the green as BTC reclaims $30,000

MicroStrategy's Bitcoin investment in the green as BTC reclaims $30,000

MicroStrategy's massive Bitcoin investment has finally delivered some paper gains to the business intelligence giant after the asset rose above $30,000 for the first time since June 2022.

The company began its accumulation spree in the summer of 2020 and spent around $4.17 billion to purchase a supply of 140,000 BTC. At the time of writing these lines, the investment is finally in the green, at least on paper.

Finally in the green

Bitcoin is newPrice increaseBeyond the $30,000 milestone has been welcomed by many individuals and companies who have increased their commitment during the market decline in recent months.

One such organization is MicroStrategy – the business intelligence giant founded by Michael Saylor, which is the largest business owner of Bitcoin.

His supply consists of 140,000 BTC as his last purchasehappenedlast week when it spent nearly $30 million to buy 1,045 BTC. The company built up its holdings between August 2020 and early April 2023 at an average valuation of $29,803 and paid out a whopping $4.17 billion.

Despite its price fluctuations in 2022 and the sharp decline during it, he remained bullish on the assetThe Terra CrashAndthe FTX meltdown. MicroStrategysatto nearly $320 million in unrealized losses after Bitcoin crashed following the LUNA/UST collapse. Executive Chairman Saylor stayed true to himself and said:

"The price of Bitcoin is set by those who have more money and less knowledge than you. Over time, they will get the knowledge and you will get the money."

Bitcoin's recent rise to over $30,000 rewarded MicroStrategy's patience and currently stands at a paper profit of around $30 million.

Bitcoin Stash by MicroStrategy. SaylorTracker

The dramatic past few months

Bitcoin's price decline towards the end of 2022 played a role in MicroStrategy's unsatisfactory performance in the fourth quarter. It posted a net loss of almost $250 million while its revenue fell to $132.6 million (less than the estimated figures).

Also the companyoccura $197.6 million impairment on its BTC holdings during this period. In comparison, this amount was “only” $727,000 in the third quarter.

It is worth mentioning that MicroStrategypannedAt the end of 2022, it abandoned its non-selling Bitcoin strategy and parted with 704 BTC to generate tax benefits.

The trends this year seem to be completely different. Except that the company purchased amounts of the primary cryptocurrency several times and saw the valuation of its investment increaserepaidits $205 million loan to the failed Silvergate Bank at a 22% discount.

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