BTC/USD - Michael Saylor’s MicroStrategy Doubles Down on Bitcoin Bet, Holdings Reach $4bn
- Michael Saylor’s MicroStrategy has acquired around 6.5k BTC for a price of around $150m over the last month.
- The business intelligence company now holds more than $4.14bn worth of Bitcoin.
- Despite a 74% share price gain YTD, MicroStrategy reported a nearly $250m loss for last quarter.
As Bitcoin begins to increasingly show signs of bullishness, some investors are beginning to think that its current price of around $27k means the world’s biggest cryptocurrency is undervalued. And one such company that’s increasing its exposure to the coin is Microstrategy – the crypto-centric business intelligence company founded by ‘Bitcoin maxi’ Michael Saylor. Let’s take a look at their position and how they’ve been doing recently.
Digital gold
Microstrategy has acquired 6,455 BTC over roughly the past month, at a total cost of around $150m. The purchase brings the value of its total Bitcoin holdings to a whopping $4.14bn – at an average purchase price of $23.2k. It also paid $161m to repay a loan it received from now-collapsed crypto-friendly bank Silvergate, for which the funds were sourced from a $340m share-sale. Microstrategy was founded in 1989, but has achieved mainstream recognition in recent years due to its nature as a major advocate for Bitcoin and its large financial bets on the coin.
How is MicroStrategy holding up?
Like those of most crypto-centric companies at the moment, MicroStrategy’s balance sheet has seen better days. Last month, the company reported a Q4 2022 loss of almost $250m, which was significantly worse than the $90m loss it reported the same quarter a year prior. But the Nasdaq listed company has also been having a pretty positive first quarter of the year, with its share price gaining more than 74% YTD. Probably as a result of Bitcoin seeing gains of 63% over the same period. If Bitcoin continues to follow its bullish trend as the banking sector wobbles, Micro”Strategy” might have a winning one.