As a crypto investor with some experience under my belt, I’m always keeping an eye on significant players in the market, and MicroStrategy is definitely one of them. The company’s commitment to Bitcoin as a strategic investment has been a game-changer for the crypto community. With their recent purchase of another 122 BTC worth $7.8 million at an average price of $35,180, MicroStrategy now holds a staggering 214,400 BTC, worth over $13 billion.
As a business intelligence analyst, I’ve been closely monitoring MicroStrategy’s moves in the cryptocurrency market under the leadership of Chairman Michael Saylor. The company has made headlines for its substantial investments in Bitcoin, which is a noteworthy development in this evolving space.
MicroStrategy’s Bitcoin holdings, among the first for corporations, have gained significant attention within the crypto world.
Based on data from cryptanalysis platform Lookonchain, MicroStrategy acquired an additional 122 Bitcoin, valued at approximately $7.8 million, with each coin costing around $63,934 in April. Since the end of Q4, the firm’s Bitcoin hoard has expanded by a total of 25,250 coins.
MicroStrategy purchased an additional 122 Bitcoin worth approximately $7.8 million in April at a price of $63,934. Currently, the company owns over 214,400 Bitcoins, which equate to around $13.22 billion. The average cost for these Bitcoins was $35,180. With current prices, MicroStrategy boasts a profitable gain of roughly $5.68 billion.
— Lookonchain (@lookonchain) April 30, 2024
With this addition, MicroStrategy now owns a total of 214,400 Bitcoins, valued at approximately $13.22 billion. The average cost per Bitcoin for these holdings was around $35,180. Based on current Bitcoin prices, it is projected that the company’s profit from this investment could reach roughly $5.68 billion, according to estimates provided by lookonchain.
Under current accounting guidelines, MicroStrategy cannot disclose any growth in its Bitcoin possessions, such as the approximately 67% rise during the last quarter. Nevertheless, this situation may alter following a new accounting standard which mandates the valuation of digital assets based on current market prices.
Businesses have up until 2025 to implement the revisions. In contrast, MicroStrategy chose not to comply during the initial quarter, announcing a significant loss of $191.6 million due to impairment in their digital assets.
In 2020, MicroStrategy made history as the initial publicly traded company to acquire Bitcoin as part of their capital investment strategy, with Saylor emphasizing the importance of shielding against inflation. While Saylor has garnered praise from digital asset supporters, only Tesla and a handful of crypto-focused corporations have followed suit in acknowledging Bitcoin on their financial reports within the United States.
Bitcoin price action
Currently, Bitcoin (BTC) had experienced a 1.37% decrease in the last 24 hours and was priced at $61,536 when this text was penned down. Crypto analyst Ali expressed his perspective on Bitcoin’s potential price trend. If Bitcoin closes below its current short-term holder realized price of $59,800, it might indicate an upcoming market peak for the cryptocurrency.
If the market reaches its peak, Bitcoin could potentially drop to $51,530 or even $42,700. However, if Bitcoin manages to surpass the resistance level of $66,250 and reclaim it as support, the bearish outlook would be disproven. Once Bitcoin exceeds $66,250, its power could grow, enabling it to advance toward $69,150. If this resistance is broken, Bitcoin may reach a new record high of $92,190.
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2024-04-30 16:37