MicroStrategy Sees Long-Term Profit as Bitcoin Price Surges

MicroStrategy's (MSTR) stock price has surged by 6.15% following the recent rally in Bitcoin's (BTC) price, which has jumped over 20% to reach above $77,000.

The company generated $477 million in revenue last year from selling enterprise software but its largest fluctuations in stock price are often related to its massive Bitcoin treasury of 840,447 coins, valued at around $65 billion, or roughly 4% of the total outstanding supply.

MicroStrategy began purchasing Bitcoin in 2020 at an average cost basis of $75,385 and had a multi-billion-dollar unrealized loss on its purchases before the recent price surge, but is now sitting on a long-term profit following the spike.

The company has actually been reducing its Bitcoin position, with CEO Michael Saylor stating he's still a long-term bull but focusing on maintaining the company's treasury rather than acquiring more coins at all costs.