• MicroStrategy’s Bitcoin (BTC) investment has become profitable again as BTC broke past the resistance of $29,000 and recorded a 10-month high.
• The Fortune 500 company had invested a total of $4.17 billion at an average price of $29,803 per BTC over two years.
• Despite the prolonged crypto winter in 2022, Michael Saylor maintained that he had full confidence in Bitcoin’s fundamentals and would continue to invest in it.
MicroStrategy’s Bitcoin Bet
MicroStrategy, a business intelligence and Fortune 500 company, began investing in Bitcoin (BTC) back in the second quarter of 2020 when BTC was trading around $10,000. Since then, they have acquired 140,000 Bitcoin for nearly $4.17 billion at an average price of $29,803 per BTC.
Bull Run in 2021
The bet made by the Fortune 500 company looked lucrative throughout the bull market in 2021 but ran into trouble during the prolonged crypto winter in 2022 when BTC price crashed by 70%. This led to criticism from some corners as MicroStrategy’s investment was showing losses of 50% at its peak bear market value.
Michael Saylor Confident on Fundamentals
Despite this setback, co-founder Michael Saylor maintained that he had full confidence in Bitcoin’s underlying fundamentals and would continue to invest in it. He even encouraged other public companies to join him on his journey and accumulate BTC on their balance sheets including Tesla and SpaceX among others.
Bitcoin Price Strengthening Again
After a disastrous 2022, BTC price is strengthening again with prices recording over 55% increase during first quarter 2023 alone after closing above previous month’s high three months consecutively; a sign considered bullish by many analysts.
Conclusion
MicroStrategy’s bold move to invest heavily into Bitcoin despite its volatile nature is paying off as it looks like their bet is turning green once again with prices breaking past resistance levels and recording 10-month highs recently creating optimism for those who believe in long term potential of cryptocurrencies like Bitcoin.