Bitcoin’s recent hike has brought MicroStrategy’s Bitcoin bet closer to profitability again.
Under Michael Saylor, the IT firm spent over $4 billion to acquire more than 138,900 BTC over three years.
The Bitcoins were purchased for an average price of $29,817, just $1500 more than its current price.
The company’s share price has gained more than 146% amid BTC’s rally.
MicroStrategy’s popular Bitcoin bet seems to be heading toward profitability once again after being in the red for the past three quarters. With Bitcoin maximalist Michael Saylor at its helm, the IT firm has amassed 138,955 BTC over the past three years, spending a whopping $4.14 billion on the flagship cryptocurrency.
MicroStrategy stock soars amid BTC rally
Since the beginning of 2023, Bitcoin has gained more than 71%, going from $16,547 all the way up to $28,336 at the time of writing. This rally marked BTC’s biggest quarterly gain in two years. The current price is roughly $1500 below MicroStrategy’s average purchasing price of $29,817. Earlier this week, BTC’s price managed to reach $29,142 for a brief period, bringing Michael Saylor’s Bitcoin bet closer to breakeven, and even profitability.
Saylor’s first BTC purchase came back in August 2020, when he chose Bitcoin over traditional investment vehicles like short-term U.S. government securities, to invest MicroStrategy’s cash as a hedge against inflation. For comparison, short-term U.S. government bonds have returned roughly 2.5% since Saylor’s first BTC investment. Bitcoin’s massive rally in 2021 led to quarterly paper gains of as much as $3.1 billion for Saylor’s firm.