It is all bullish for tech firm MicroStrategy as its Bitcoin portfolio moves into profit after almost a year of unrealized loss. Following Bitcoin’s rally above $30,000, Michael Saylor’s MicroStrategy saw its average Bitcoin price surpassed, all thanks to the firm’s consistent dollar-cost averaging (DCA).
In its last Bitcoin acquisition last week, MicroStrategy stated that its price per bitcoin has reduced to $29,803 after the tech firm took advantage of the bear market to DCA its price. With bitcoin’s price at $30,070 at press time, the 140,000 BTC held by Michael Saylor-managed firm is now in profit for the first time since June 2022.
Bitcoin’s price rebounded beautifully from last year’s lows and has posted an 81% year-to-date gain so far in 2023, outperforming most assets in the world. Having seen its best quarter in two years, analysts have linked the recent Bitcoin price surge to bank failures and the Federal Reserve’s persistent interest rate hike.
DCA Paid Off
Since stating that it would hold Bitcoin as part of its cash reserves, MicroStrategy has continued to buy the crypto asset. Saylor believes Bitcoin will continue to rise and divert the devaluation that inflation can cause for fiat currencies.
MicroStrategy’s DCA and HODL strategies have always kept its bitcoin bag within profit ranges. Although the firm’s average Bitcoin purchase price has never reached $31,000, Bitcoin’s dip to $19,000 left Microstrategy with huge unrealized losses.
Wen Moon?
MicroStrategy’s strategic purchases might have positioned them for the next bull run, which is expected soon. According to analysis, with the Bitcoin halving set for next year, the crypto asset could be worth $100,000 soonest.
The $4 billion bet by MicroStrategy on Bitcoin will be near 230% if the asset returns to its all-time high of $69,000 and the firm doesn’t buy more of the digital asset. MicroStrategy, however, does not intend to quit investing in the biggest cryptocurrency soon and will keep the spending spree coming
