MicroStrategy, a technology company, has seen a profitable turnaround in its Bitcoin investment as the cryptocurrency’s value recently increased. The public company, headquartered in Tysons, Virginia, has seen its investment grow to a value of $4.8 billion today. This represents a remarkable 160% increase in the value of its Bitcoin holdings since they began acquiring the cryptocurrency more than three years ago, as per data from Bitcoin Treasuries.
MicroStrategy primarily offers software solutions to businesses. In a recent filing with the SEC, the company disclosed that it had purchased Bitcoin at an average cost of $29,582 per coin last month.
According to data from CoinGecko, the price of Bitcoin is currently at $30,904, which is up over 3% in the last 24 hours and over 9% in the past week. Since the beginning of this year, the value of Bitcoin has surged by 85%, starting at $16,615 per coin.
In September, MicroStrategy increased its Bitcoin holdings by acquiring an additional $147 million worth of the cryptocurrency. MicroStrategy now possesses more Bitcoin than any other publicly traded company. Their initial purchase of Bitcoin in August 2020 played a role in kickstarting a period of significant price increases.
MicroStrategy has consistently been increasing its Bitcoin holdings over time and currently possesses a substantial 158,245 Bitcoins, which are valued at $4.8 billion today. Interestingly, the company has occasionally used loans backed by Bitcoin to acquire even more of the cryptocurrency.
The founder and chairman of the company, Michael Saylor, previously stated that he believed Bitcoin was a smart way to protect against inflation and generate significant returns for the company’s shareholders.
He has, in recent times, referred to the digital coin as “digital gold” and consistently argues that it’s a superior asset when compared to stocks, bonds, gold, or real estate.
MicroStrategy’s investments in Bitcoin appear to be benefiting its shareholders significantly. Since the company’s initial purchase of Bitcoin, its stock has seen an impressive rise of over 150%. MicroStrategy, which is listed on the Nasdaq as MSTR, currently has a share price of $367.28, reflecting a 5.5% increase in a single day.
