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Why MicroStrategy isn’t sweating the crypto crash — $60M in unrealized gains tells the story

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TL;DR

  • MicroStrategy’s investment in Bitcoin has resulted in $60 million in unrealized gains despite the cryptocurrency’s volatile market and a significant drop in value this year.
  • The company has maintained a resolute Bitcoin HODL strategy, even acquiring more of the cryptocurrency when opportunities arose, leading to an asset appreciation of over $1 billion in total.
  • Amid signs of market stabilization and against conventional wisdom, MicroStrategy is considering raising additional capital for further Bitcoin investments, reinforcing its daring approach to long-term financial strategy.

MicroStrategy’s daring venture into Bitcoin investment is proving worthwhile, with about $60 million in unrealized gains despite the market’s downturn this year. The company, helmed by CEO Michael Saylor, holds about 152,000 bitcoins acquired at a cost of $4.52 billion as of June 28, 2023. Amid a crypto bear market and erratic fluctuations, the firm’s tenacity to hold on to its Bitcoin assets highlights a fearless approach to long-term investment.

Unwavering commitment amid market volatility

Significantly, MicroStrategy remains unshaken by Bitcoin’s recent decline in market value. The cryptocurrency has experienced a tumultuous year, witnessing a staggering 56% drop from its all-time highs. However, the company’s steadfast adherence to its Bitcoin HODL strategy seems to vindicate Saylor’s risky yet calculated moves. Moreover, the company has defied conventional wisdom by acquiring additional bitcoins when trading near the $30,000 mark in both April and June this year. Consequently, its bitcoin assets have appreciated by over $1 billion in total, painting a far different picture than the doom and gloom usually associated with cryptocurrencies these days.

MicroStrategy’s forward-thinking strategy

Despite the unsettling volatility in the crypto market, Bitcoin has seen a modest resurgence, surging over 11% in the last seven days. This uptick followed recent news related to Ripple XRP, another cryptocurrency. Rather intriguingly, Bitcoin’s price has rebounded from a 30-day low of $26,011.47 to a momentary high of $30,000, before settling at its current price of around $29,865. With the crypto markets showing signs of stabilization, MicroStrategy is not only maintaining its existing holdings but also contemplating further investments.

Rather than capitalizing on the recent upward movement to reduce its exposure, the firm is mulling over strategies to raise additional capital for further acquisitions. This unyielding stance reiterates MicroStrategy’s sheer audacity in the face of widespread market skepticism. Additionally, it raises a question that cannot be easily dismissed: if a well-established firm like MicroStrategy is undeterred by the obvious risks of crypto investment, what does that indicate for the future of cryptocurrencies in the broader financial industry?

Certainly, the story of MicroStrategy and its Bitcoin investments is far from over, and whatever the outcome, it promises to be a riveting spectacle.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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