Bouncing Back: MicroStrategy’s $4B Bitcoin Investment Is in the Green Again

The recent bull run for the leading cryptocurrency Bitcoin has highly favored its holders. Among them is the American business intelligence company MicroStrategy, which holds about 140,000 BTCs in its portfolio. After two months, the firm finally sees gains in its Bitcoin holdings.

MicroStrategy’s BTC Holding Climbs to $4.2B

On April 6th, MicroStrategy bought over 1,000 BTCs, bringing its total holdings to 140,000 BTCs. A week later, BTC’s price spiked to over $30,000. Following the price surge, the valuation of MicroStrategy’s holdings increased to $4.17 billion. This was the first time the company’s accumulated BTCs saw exponential growth for almost a year.

On June 21st, BTC rose in value from around $27,000 to approximately $30,200. Unsurprisingly, MicroStrategy’s BTC portfolio grew too. This took the business intelligence firm’s holdings to above $4.2 billion. This places the company’s profits at over $2 billion.

While the latest report may seem like a win for MicroStrategy, the company still accounts for losses owing to Bitcoin’s current trading price. The company sat at an unrealized loss of over $1 billion a year ago. Despite the loss, the firm’s then-CEO Michael Saylor declared that the company would remain committed to a buy-and-hold policy. 

Although MicroStrategy sold some of its BTCs last December, it has largely maintained the HODL concept.

Why Did BTC Price Increase?

After struggling around $18,000 to $22,000 for most of last year, Bitcoin’s price began to see some uptrends as this year started. However, BTC dropped from $27,500 to approximately $24,800 due to the legal tussle between crypto exchanges Binance and Coinbase, and the United States Securities and Exchange Commission (SEC).

Bitcoin’s latest price surge above $30,000 can be attributed to several factors. Prominent among them is the recent move by asset management companies, BlackRock and WisdomTree, to file for Spot Bitcoin ETF with the U.S. SEC. The companies took the big step despite the past failures of other financial institutions on the same path. Still, the SEC is yet to endorse the filing from both firms.

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