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- MicroStrategy has added another 3,000 BTC to its overall stash.
- The uptick in Bitcoin price has sent the company’s profit to $4.65 billion.
MicroStrategy, an American Business Intelligence firm has once again made headlines as its former CEO Michael Saylor announced the purchase of an additional 3,000 Bitcoin to its already substantial holdings, sending its BTC profit soaring to $4.65 billion.
MicroStrategy Bitcoin Accumulation
Saylor highlighted in his post on X that the 3,000 BTC was purchased at approximately $155 million at an average price of $51,813 per coin. This strategic move strengthens MicroStrategy’s Bitcoin holdings, which now total around 193,000 BTC acquired over various purchases for a total of $6.133 billion.
MicroStrategy has acquired an additional 3,000 BTC for ~$155 million at an average price of $51,813 per #bitcoin. As of 2/25/24, @MicroStrategy now hodls 193,000 $BTC acquired for ~$6.09 billion at an average price of $31,544 per bitcoin. $MSTR https://t.co/micudbYf3P
— Michael Saylor⚡️ (@saylor) February 26, 2024
Accordingly, the company’s average cost per Bitcoin stands impressively low at $31,780, showcasing MicroStrategy’s adeptness at accumulating digital assets. At current market prices hovering around $56,000 per Bitcoin, the MicroStrategy Bitcoin position boasts a staggering valuation of over $10.79 billion.
This massive increase translates to an unrealized profit of $4.65 billion, representing an impressive 76% yield-to-date since MicroStrategy’s initial foray into Bitcoin investment back in 2020. MicroStrategy’s relentless accumulation of Bitcoin not only serves to enhance its exposure to the digital asset but also allows the company to continually lower its cost basis, maximizing potential future gains.
As Michael Saylor remains steadfast in his belief in Bitcoin’s long-term value proposition as digital gold, MicroStrategy’s strategic maneuvers in the crypto space continue to garner attention from shareholders and analysts alike.
Moreover, MicroStrategy’s substantial Bitcoin accumulation now positions the company for a potential inclusion in the S&P 500 stock market index soon. The prospect of MicroStrategy’s inclusion in the S&P 500 creates a feedback loop that could attract billions of dollars into the crypto industry, further fueling Bitcoin’s upward course. However, certain criteria needs to be met first as getting into the S&P 500 isn’t as simple as being among the 500 largest companies.
Bitcoin’s Recent Price Movement
As of the time of writing, Bitcoin is trading at $56,649, demonstrating an increase of 11% in the past 24 hours with a trading volume of $49 billion. This bullish momentum is mirrored in the continued inflow of funds into crypto investment products, with Bitcoin leading the charge with $570 million in inflows year-to-date.
The approval of a Bitcoin spot ETF in January has undoubtedly played a crucial role in attracting institutional interest, as evidenced by the exponential growth of investment products like BlackRock’s iShares Bitcoin Trust Exchange-Traded Fund (ETF).
BlackRock’s iShares Bitcoin Trust ETF has surpassed the $6 billion mark in Assets Under Management (AUM), experiencing a remarkable 500% growth since January 2024. This meteoric rise not only positions BlackRock as a frontrunner in the Bitcoin ETF market but also highlights the shift occurring in the investment sector as cryptocurrency integration into mainstream finance accelerates.
More embrace are projected to come as more Registered Investment Advisors (RIAs) gain a good appreciation of the spot Bitcoin ETF offering.