MicroStrategy's Bitcoin Bet Pays Off Amid Price Surge
MicroStrategy's (MSTR) massive Bitcoin position has turned from a $13 billion loss to a $1.4 billion gain, thanks to the cryptocurrency's recent price surge. Shares of MicroStrategy surged this week as the price of Bitcoin continued to rise. The company has been selling its Bitcoin holdings in recent weeks and is now focused on maintaining its treasury rather than acquiring more coins at all costs.
The value of Bitcoin has increased by over 20% in recent trading sessions, moving from a multi-month low of around $63,000 to above $77,000. MicroStrategy generated $477 million in revenue last year mainly through the sale of enterprise software, but its stock price is heavily influenced by its massive Bitcoin holdings.
Before the recent price surge, MicroStrategy had an unrealized loss on its Bitcoin purchases, but after the spike it now has a long-term profit. The company began purchasing Bitcoin at around $11,000 in 2020 and has an average cost basis of $75,385 per coin.