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MicroStrategy’s Bitcoin holdings pay off, thanks to bull run

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MicroStrategy’s Bitcoin holdings have garnered a profit of $147 million due to BTC rising 15% within a month.
Posted: | Last updated: November 28th, 2023
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MicroStrategy's Bitcoin holdings pay off, thanks to bull run
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Posted: | Last updated: November 28th, 2023

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  • Last month, MicroStrategy added 5,445 BTC for $147.3 million.
  • If the SEC approving spot BTC ETFs could trigger another rally, it could lead to another profitable turn for the firm.

One of the earliest companies to invest in Bitcoin [BTC], MicroStrategy saw a turn in its fortunes as the king coin climbed north of $30K.

MicroStrategy acquired Bitcoin for the first time in 2020, buying $250 million worth of tokens. Its attitude towards the king coin has continued to be bullish since then.

Nearly a month ago, the business intelligence firm made a filing with the U.S. Securities and Exchange Commission (SEC). It mentioned the firm had added 5,445 BTC for $147.3 million. It had purchased these additional coins at an average price of around $27,053 per BTC.

MicroStrategy’s co-founder and executive chairman Michael Saylor was also enthusiastic about the company’s Bitcoin portfolio.

As of 24 September, the latest purchase put MicroStrategy’s Bitcoin holdings at 158,245 worth $4.68 billion—an average price of $29,582 per BTC.

Since then, the king coin’s price has risen nearly 15% to $30,514 at press time.

MicroStrategy bitcoin

Source: BTC/USD, TradingView

A quick calculation tells us that its Bitcoin holdings have put MicroStrategy in a strong position in the market. Since the firm purchased its total Bitcoin holdings at an average of $29,582 per coin, it has achieved a profit of $147 million.

Can Bitcoin ETFs lead to more substantial profits?

The recent Bitcoin rally has turned out to be very profitable for MicroStrategy as is evident. Saylor was quick to point out the king coin’s growth outpacing that of Nasdaq.

There is a speculation that the SEC approving spot Bitcoin exchange-traded funds (ETF) could trigger another Bitcoin rally. If this occurs, it could lead to a substantive profit margin for the business intelligence firm.

Note that MicroStrategy is one of the most prominent companies to have large BTC portfolios such as Tesla, Marathon Digital Holdings, Galaxy Digital Holdings, and Coinbase.

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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