MicroStrategy’s strategic investments in Bitcoin (BTC) are paying off. With Bitcoin’s recent breakthrough above $100,000, the company stands at an unrealized profit of as much as $18 billion. What does this mean for MicroStrategy and the broader market?
Bitcoin bet is paying off
MicroStrategy has pursued an aggressive Bitcoin strategy since 2020, even during the bear market. The company currently owns 402,100 BTC, with a total value of $41.6 billion. The company recently added another 15,400 BTC, representing an investment of $1.5 billion.
These purchases come on the heels of a record $5.4 billion transaction earlier this month. Thanks to Bitcoin’s impressive price increase, MicroStrategy not only benefits from a huge paper profit, but also from an increase in its stock price.
Best performing stock
Shares of MicroStrategy are up a whopping 542% this year, giving the company its best performing stock in years. This success even surpasses that of tech giants like Nvidia, which benefited from the growing AI sector.
Michael Saylor, the driving force behind this strategy, is now encouraging other companies to adopt Bitcoin. He recently visited Microsoft and predicts that the digital currency could help the tech company’s market capitalization grow to $5 trillion.
Jerome Powell: Bitcoin is “digital gold”
Bitcoin’s recent price rise has been partly attributed to statements made by Federal Reserve Chairman Jerome Powell. During The New York Times DealBook Summit, Powell called Bitcoin “digital gold” and emphasized that it poses no threat to the US dollar.
According to Powell, Bitcoin is a speculative asset and not a stable store of value due to its volatility. However, critics dispute his statements and point out that many investors see Bitcoin as a digital store of value. The growing confidence in Bitcoin as a future store of value reinforces this image.
Claim €10 free and have a chance to win €200 in Sui (SUI)!
Grab this unique opportunity with Newsbit and Bitvavo! Create an account now via the button below, deposit €10 and immediately receive €10 free. But that’s not all: by trading at least €200 between December 2 and 8, you automatically have a chance to win as much as €200 in Sui (SUI). This promotion is valid for both new and existing customers!
Claim your €10 free, have a chance to win €200 in Sui (SUI)
Don’t miss this opportunity to immediately benefit from the growing popularity of Crypto!
Source: https://newsbit.nl/microstrategy-behaalt-18-miljard-winst-met-bitcoin-investeringen/
