Microstrategy, a leading business intelligence company, has made a huge profit on its Bitcoin investment, as the cryptocurrency surged to new highs in October 2023, according to a report from the International Business Times. The company, which owns more Bitcoin than any other corporation in the world, has seen its unrealized gains exceed $170 million, according to its latest regulatory filing.
Microstrategy started buying Bitcoin in August 2020, when the price was around $10,000. Since then, it has accumulated 158,245 Bitcoins, worth about $4.82 billion at the current price of around $30,500. The company paid an average of $29,582 per Bitcoin, spending a total of $4.68 billion.
MicroStrategy’s Confidence in Bitcoin Has Paid Off
This means that its Bitcoin holding has appreciated by about 3%, or $174 million, in less than a year. The company’s CEO, Michael Saylor, is a vocal advocate of Bitcoin and believes that it is a superior store of value than fiat currency or gold. He has said that he intends to hold Bitcoin for the long term and that he is willing to sell shares or raise debt to buy more Bitcoins.
In September 2023, Microstrategy bought another $147 million worth of Bitcoin, adding to its already massive position. Saylor has also encouraged other companies to follow his example and invest in Bitcoin as a hedge against inflation and currency devaluation.
He hosted a conference called “Bitcoin for Corporations” in February 2021, where he shared his experience and strategy with thousands of executives from various industries.
He has also revealed that he personally owns 17,732 Bitcoins, worth about $541 million. Microstrategy’s bold move into Bitcoin has paid off handsomely, as the company’s share price has soared by more than 200% since August 2020.
The company has also attracted the attention of prominent investors, such as Paul Tudor Jones and Stanley Druckenmiller, who have praised its vision and leadership. Microstrategy is widely regarded as a pioneer and a leader in the corporate adoption of Bitcoin, which could have a significant impact on the future of finance and technology.