Bitcoin has had a terrific week-soaring on Tuesday past the coveted $30,000 to tap $30,500 for the first time in over ten months.
The resurgence, albeit catching some short traders flatfooted, has been a blessing for many, particularly for business intelligence firm MicroStrategy. Earlier this month, the software company announced that it had bought another 1,045 coins, spending roughly $29.3 million.
That purchase brought the firm’s aggregate stash to 140,000 bitcoins, acquired at approximately $4.17 billion and an average purchase price of approximately $29,803 per bitcoin. Considering Bitcoin’s price of $30,005 at the time of writing, the value of that stash was just over $4.2 billion, signalling MicroStrategy’s Bitcoin bet is starting to pay off.
MicroStrategy started dabbling with Bitcoin in 2020 when Michael Saylor, its then CEO, started accumulating the cryptocurrency as a hedge against inflation. The following year, Bitcoin went on a historic bull run prompting the company to continue adding to its holdings. However, the move was met with scepticism after Bitcoin slumped upon tapping an all-time high of $68,789, with some experts doubting the long-term viability of Bitcoin as a store of value.
Nevertheless, Saylor had previously noted that the firm should continue acquiring more satoshis with no intention of selling, except for a single instance when the firm sold a portion of its holdings to secure “tax benefits”. According to data from Bitcoin Treasuries, MicroStrategy is now the world’s largest Bitcoin-holding public company, followed by Marathon Digital and Tesla at 12,323 BTC and 9,720 BTC.
Notably, according to an April 11 tweet by Saylor, since MicroStrategy started purchasing Bitcoin in August 2020, the crypto asset has outperformed the S&P 500, Nasdaq, Gold, Silver and Bonds by over 100%.
Bitcoin has performed exemplarily well in the past quarter, up over 75% since the start of the year. This marks a significant rebound for the digital asset, which saw its price plummet in the latter half of 2021. Despite recent regulatory concerns and volatility in the cryptocurrency market, Bitcoin’s impressive gains demonstrate continued investor interest in the asset class, with experts now predicting price is set to push higher.
According to popular crypto analyst “Ali”, BTC “remains on course for $34,000” as a bullish megaphone pattern continues to dictate the assets trajectory.
On the other hand, Michaël van de Poppe, founder of crypto trading firm Eight Global, predicts that Bitcoin will surge to $50,000 this quarter, noting that “we are already in the run.”
“I think that we continue the movements approximately towards 40 to 50K…then we’re going to have a reverse from the second part of the year,” said Michaël.
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