• MicroStrategy, an American software firm, has invested in 141,000 Bitcoin at a cost of around $4.17 billion and is now profiting from its cryptocurrency wager.
• The stock price of the firm (NASDAQ: MSTR) rose $7.82% on Monday, ending the trading day at $312.78.
• Michael Saylor, executive chairman of MicroStrategy, has come out in support of Bitcoin claiming that it has more potential for growth than gold and equities.
MicroStrategy’s Bet On Bitcoin
MicroStrategy, an American software firm, is currently profiting from its bet on Bitcoin (BTC). According to an SEC filing made by MicroStrategy on April 5th, the business and its subsidiaries bought roughly 1,045 Bitcoin for about $29.3 million between March 24th and April 4th. This brought MicroStrategy’s total number of Bitcoin bought to about 141,000 at a total cost of around $4.17 billion and an average cost of around $29,803 per coin.
MicroStrategy’s Stock Price Growth
The decision was initially viewed with suspicion due to widespread uncertainty over Bitcoin’s long-term sustainability as a store of value among financial sector professionals but since then the firm’s assets have grown steadily. MicroStrategy’s recent stock price growth may also be attributed in large part to the company’s bet on Bitcoin as the stock price rose 7.82% on Monday ending the trading day at 312.78$. The stock price has risen dramatically up 40% in only one month’s time which is remarkable considering that this rise happened during a pandemic where other stocks are struggling or staying stagnant with no movement whatsoever.
Michael Saylor Supports Cryptocurrency
Michael Saylor executive chairman of MicroStrategy has come out in public support for cryptocurrency claiming it has more potential for growth than gold or equities and that selling their bitcoin assets is not in the cards with exception being made only once last year when they sold some off for tax advantages which they consider very minimal compared to what they could gain if they held onto them longer term instead of short term gains through sales like this one last year mentioned above .
Bitcoin Trading At Record High Prices
Currently bitcoin is trading at 30232$ up 3% in just 24 hours making microstrategys total holdings worth 4200$ million now thanks to increase in value of main cryprocurrency over previous twenty four hours crossing 30k level which was never seen before before so this can be considered record high prices which any currency ever traded against US Dollars .
Conclusion
In conclusion ,Microstrategys investment into Bitcoins have proved beneficial so far as it is proving profitable for them with increaseing value over time .It seems that their gamble paid off as many people were sceptical about it before but now their decision looks justified .