In the last year alone, the value of Bitcoin ($BTC) held by Nasdaq-listed business analytics firm MicroStrategy has skyrocketed, leaving the company with over $500 million in unrealized profits on the cryptocurrency lying in its treasury.
The world’s biggest corporate Bitcoin holder, according to statistics from BitcoinTreasuries, has reaped the benefits of Bitcoin’s recent substantial price surge. The corporation presently possesses 189,150 BTC, valued at about $8.55 billion.
The same source also states that since MicroStrategy began amassing Bitcoin in August 2020, the total cost basis for the BTC it has on its balance sheet is $5.89 billion, indicating that the approach has been quite profitable.
In the beginning, the Nasdaq-listed business intelligence company began to amass Bitcoin when its price was little more than $10,000. As part of its entry into the sector, MicroStrategy purchased 21,454 BTC. Since then, it has invested in Bitcoin, bringing its average investment cost per BTC to around $31,165.
The company reportedly increased its holdings in the flagship cryptocurrency by 14,620 BTC, or around 0.9% of the entire supply, for a total of about $615.7 million, or $42,110 per coin, according to CryptoGlobe.
Michael Saylor, CEO of MicroStrategy, has likewise realized the benefits of Bitcoin investing; he now owns over 17,000 BTC. Saylor intends to grow his Bitcoin holdings, showing his faith in the future of the cryptocurrency, after selling his business options for $216 million.
A recent interview with Saylor on CNBC’s “Closing Bell: Overtime” provided a notable breakdown of Bitcoin’s surge, which he linked to the digital revolution of money.
In a post on the microblogging site, Blockstream CEO and founder Adam Back revealed that MicroStrategy has been buying Bitcoin via market-diluting new shares sold to current owners.
There has been a rise in the ratio of bitcoin to shares, which implies that the net impact is around 1.4% anti-dilutive in bitcoin/share, according to Back.
According to Back, the company increased its holdings of Bitcoin by $617 million, or 0.011313 BTC/share, after purchasing 174,530 BTC on 15.64 million shares and selling 1.077 million more shares for $610 million.
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