MicroStrategy, a business intelligence company, has recently increased its Bitcoin holdings, resulting in a significant unrealized profit. The company’s bet on Bitcoin has paid off, with its unrealized profit now exceeding $3 billion.
Recent Bitcoin Price Surge Drives Massive Unrealized Profit
MicroStrategy, founded by Bitcoin advocate Michael Saylor, now holds over $9 billion worth of Bitcoin, representing almost 1% of the circulating supply. The company began investing in Bitcoin in 2020, making its first purchase of $250 million worth of Bitcoin in August 2020. Since then, it has steadily increased its holdings.
Bitcoin’s Strong Performance in the Past Week
Bitcoin has experienced a strong rally in the past seven days, with its price rising by 12%. This surge has pushed Bitcoin’s value to around $48,200, resulting in MicroStrategy’s Bitcoin holdings being worth a staggering $9.1 billion. This represents an unrealized profit of $3.17 billion.
MicroStrategy’s Long-Term Bitcoin Strategy
MicroStrategy’s consistent investment in Bitcoin and its sizable stash amidst price fluctuations demonstrate the company’s long-term approach to Bitcoin. Michael Saylor has stated that the company is in Bitcoin for the long run and has no plans to sell its holdings anytime soon.
Potential for Further Gains
If Bitcoin’s bull run continues and it reaches $100,000 or higher, as some analysts predict, MicroStrategy’s unrealized profits could reach tens of billions of dollars. The company is set to benefit from the upcoming Bitcoin halving and the growing popularity of spot Bitcoin ETFs.