MicroStrategy’s Bitcoin Stash Now in Green as Crypto Assets Rise ⋆ ZyCrypto
Bitcoin has had a fantastic week on Tuesday passing the coveted $30,000 to hit $30,500 for the first time in over ten months.
The resurgence, while it has caught some short traders flat-footed, has been a boon for many, especially for business intelligence firm MicroStrategy. Earlier this month, the software company announced that it had purchased an additional 1,045 coins, spending approximately $29.3 million.
This purchase brought the firm’s total holdings to 140,000 bitcoins, purchased 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, signaling that MicroStrategy’s Bitcoin efforts are starting to pay off.
MicroStrategy began dabbling in Bitcoin in 2020 when Michael Saylor, its then-CEO, started hoarding the cryptocurrency as a hedge against inflation. The following year, Bitcoin went on a historic bull run that prompted the company to continue increasing its holdings. However, the move was met with skepticism after Bitcoin fell after hitting a record 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 would continue to acquire more satoshis with no intention of selling, except for a single instance when the firm sold part 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 a tweet from Saylor on April 11, since MicroStrategy began buying 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 last quarter, up over 75% since the start of the year. This marks a significant rebound for the digital asset, which saw prices plummet in the latter half of 2021. Despite recent regulatory concerns and volatility in the cryptocurrency market, Bitcoin’s impressive gains show continued investor interest in the asset class, with experts now predicting the price is set to push higher.
According to popular cryptoanalyst “Ali”, BTC “remains on course for $34,000” as a bullish megaphone pattern continues to dictate the asset trajectory.
On the other hand, Michaël van de Poppe, founder of crypto trading firm Eight Global, predicts that Bitcoin will rise to $50,000 this quarter, noting that “we are already on the run.”
“I think that we continue to move towards about 40 to 50,000 … then we will have a reverse from the second part of the year“, Michael said.
