Michael Saylor's MicroStrategy Nets Over $2B Profit As Bitcoin Rallies Near $42K

© Reuters. Michael Saylor’s MicroStrategy Nets Over $2B Profit As Bitcoin Rallies Near $42K

Benzinga – MicroStrategy Inc. (NASDAQ:MSTR) has recorded a profit exceeding $2 billion from its Bitcoin (CRYPTO: BTC) holdings as the cryptocurrency’s price surges past $42,000.

What Happened: MicroStrategy’s substantial Bitcoin investment has generated a significant return. Under the direction of Executive Chairman Michael Saylor, the business intelligence firm began its Bitcoin investment journey in August 2020.

As of November 30, MicroStrategy owned 174,530 Bitcoins, acquired for approximately $5.28 billion at an average cost of $30,252 per Bitcoin.

As Bitcoin’s price soared to $42,000 on Monday, the value of MicroStrategy’s holdings skyrocketed to roughly $7.3 billion, translating to a profit north of $2 billion. Despite a slight pullback to $41,700, the firm’s profit remains substantial.

See Also: Crypto Market Braces For Dramatic Shift: Analyst’s Predictions About Solana, Chainlink, Avalanche Send Sh

Bitcoin had not seen such heights since April 2022, preceding the collapse of the Terra ecosystem. In the 2022 bear market, Bitcoin’s value plummeted below $16,000, posing a significant threat to MicroStrategy’s investment. Nevertheless, Saylor persisted in growing the company’s Bitcoin portfolio, leveraging a mix of debt and equity to fund the purchases.

On Monday, MicroStrategy’s shares experienced a 6% uptick in trading.

Why It Matters: MicroStrategy added 16,130 Bitcoins to its treasury. This move drew praise from billionaire investor and Galaxy Digital CEO Mike Novogratz, who lauded Saylor as a “legend.”

Read Next: Bitcoin Bulls Charge: Analyst Predicts These Peaks For BTC, Ether In 2025

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

© 2023 Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga


This website uses cookies. By continuing to use this site, you accept our use of cookies.