MicroStrategy, the world’s largest corporate holder of Bitcoin, posted a profit for the first time since July thanks to a hefty rise in the price of BTC that has seen the premier crypto break above the $30,000 threshold.
MicroStrategy No Longer Underwater
As the price of Bitcoin recaptures the $30,000 mark, software company MicroStrategy’s long-term bet on Bitcoin appears to be paying off. As of Oct. 23, MicroStrategy held 158,245 BTC, acquired at an aggregate purchase price of approximately $4.68 billion.
With the OG crypto soaring 3.8% over the past 24 hours and now changing hands at $31,072.59, this means that MicroStrategy’s Bitcoin holdings are now worth over $4.847 billion — making it the public company with the biggest stash of Satoshis in the world.
MicroStrategy’s High-Profile Bitcoin Gamble
MicroStrategy founder (and then-CEO) Michael Saylor announced In August 2020 that the company had converted some of its cash holdings into Bitcoin owing to inflation concerns.
The American software company has since continued accumulating the leading cryptocurrency over the past three years, as Saylor is still convinced it is a safe investment.
Saylor, a noted Bitcoin maximalist, resigned from his role as CEO of MicroStrategy in August 2022 and transitioned to the role of executive chairman, a move that he claimed would let him focus even more on “Bitcoin acquisition strategy and related Bitcoin advocacy initiatives.” MicroStrategy president Phong Le took over the CEO role.
The Bitcoin bull has reiterated that MicroStrategy has no intention of liquidating its Bitcoin stash in the foreseeable future, except for one incident in December 2022 when the firm sold some of its holdings primarily for the purpose of accruing “tax benefits.”
MicroStrategy is likely to acquire even more Bitcoin. The software company disclosed in August it would raise up to $750 million by selling more stock, and planned to use some of the proceeds to buy BTC.
ETF Hype Keeps Bitcoin Soaring
The latest Bitcoin rise comes amid ongoing speculation around the potential approval of a BTC exchange-traded fund (ETF) in the U.S.
From a positive perspective, the potential listing of Bitcoin ETFs would serve as a strong bullish catalyst. According to CryptoQuant’s analysis, greenlighting such an investment vehicle could boost Bitcoin’s market value by $155 billion. The blockchain analytics firm believes that this scenario would propel the BTC price to between $50,000 and $73,000 in 2024. This would undoubtedly be a boon for MicroStrategy’s Bitcoin stash.