Strategy's Massive Bitcoin Bet Now Pays Off After Years of Losses
Strategy Inc, formerly MicroStrategy (NASDAQ:MSTR), has seen its massive Bitcoin position turn from a $13 billion loss to a $1.4 billion gain following Bitcoin's recent price surge.
The company generated $477 million in revenue last year through the sale of enterprise software but has been closely tied to its 840,447 Bitcoin treasury, worth around $65 billion and representing roughly 4% of Bitcoin's outstanding supply.
Strategy began purchasing Bitcoin at around $11,000 in 2020, with an average cost basis of $75,385. The recent price surge has pushed the company's unrealized gain on its purchases into positive territory for the first time.
While Strategy is now above water on its massive Bitcoin position, CEO Michael Saylor emphasized that he remains a long-term bull on Bitcoin and has adjusted his strategy to focus on maintaining the company's Bitcoin treasury rather than acquiring more at all costs.