Key Takeaways:
- MicroStrategy’s Bitcoin holdings have turned profitable again.
- The firm has been struggling since Spring 2022.
- Could the Bitcoin price rise continue in 2023?
YEREVAN (CoinChapter.com) — MicroStrategy’s Bitcoin holdings turned profitable after the cryptocurrency’s 5.4% jump in the last three days. Notably, the BTC/USD exchange rate crossed $30,000 on Oct. 20 but had corrected modestly to $29,800 by Oct. 21.
MicroStrategy-Bitcoin History So Far
MicroStrategy, a business intelligence firm, has systematically accumulated Bitcoin since Aug. 10, 2020. In its latest regulatory filing, the firm revealed that it had bought 467 BTC in July 2023 and approximately 5,445 BTC between Aug. 1 and Sep. 24, thus adding a quarterly batch of 5,912 coins to its stash.
As of Sep. 24, 2023, MicroStrategy, together with its subsidiaries, held an aggregate of approximately 158,245 bitcoins, which were acquired at an aggregate purchase price of approximately $4.68 billion and an average purchase price of approximately $29,582 per bitcoin, inclusive of fees and expenses.
MicroStrategy stated in its filing.
Considering the $218 difference between the current price and MicroStrategy’s average purchase price, the firm made a total profit of nearly $34.5 million overall.
The Q3 batch of Bitcoin was bought at a lower price, as the crypto lost 15% of its valuation throughout the quarter, going from $30,000 to just below $27,000.
The chart below demonstrates that MicroStrategy profited during the 2021 bull run. However, the market turned sour in Q2 2022. BTC prices plummeted due to events like the Celsius, Terra, and FTX crashes. From that point on, the firm incurred losses.
In a recent tweet, the firm’s chief executive, Michael Saylor, reiterated his stance on accumulating more BTC. The CEO compared the overall price increase of stocks, precious metals, and Treasury Bonds to demonstrate the crypto’s resilience.
Bitcoin price has increased by 147% overall since August 2020, but MicroStrategy’s profits are tame in comparison, as demonstrated above. Meanwhile, if Bitcoin’s price confidently exceeds $30,000, the firm’s revenue could increase.
Here are some factors that could push BTC above the noted resistance.
Bullish factors for BTC
The US Securities and Exchange Commission (SEC) had two significant losses in court against crypto firms, which could have propelled the BTC price.
After choosing not to file an appeal to the Supreme Court, the agency has a fresh filing from Grayscale on its desk, as the largest Bitcoin investment vehicle seeks to turn its Trust into a Bitcoin Spot ETF. Bitcoin investors took the word of experts who believe the request will be granted soon enough, marking the first crypto-based spot ETF in the US.
Another significant event to lift BTC investors’ spirits was the latest development in the SEC’s lawsuit against Ripple Labs over the XRP coin. The agency withdrew its charges against two Ripple executives on Oct. 20. While the case is not closed, the partial Ripple victory might have spurred the bulls.
While the euphoria from the events above might fade just as quickly, data from CoinShares shows investors parked $168 million in Bitcoin year-to-date, generally snubbing altcoins. The weekly flows at the end of September paint a similar picture, with over $20 million going into Bitcoin.
Notably, the rising oil prices and persistent inflation could still ravage the markets, dampening MicroStrategy’s prospects of returning. However, if Bitcoin revisits its sanctuary status, the BTC price could get above $30,000 for the first time since June 2022.
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