Based on the latest available data, the Nasdaq-traded Microstrategy possesses 190,000 bitcoins, acquired at a cost of $5.96 billion. Presently, the value of the company’s bitcoin holdings has swelled to $9.88 billion. This marks a 66% increase in the firm’s bitcoin portfolio, a stark contrast to its performance just eight months earlier.
Microstrategy's Bitcoin Investment Flourishes, Valued at Nearly $10 Billion
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From Decline to Prosperity: Microstrategy’s Strategic Bitcoin Accumulation Pays Off
Archived data from Feb. 16, 2024, reveals that Microstrategy (Nasdaq: MSTR) possesses around 190,000 BTC, valued at $9.88 billion. This represents a significant profit margin, as the acquisition cost of these bitcoins was $5.96 billion, translating into a 66% appreciation or a gain of $3.92 billion. Further examination of historical records from June 11, 2023, paints a different picture, showing Microstrategy’s investments were not as prosperous, with the company’s portfolio in decline.
At that juncture last summer, Microstrategy’s bitcoin holdings were less, totaling 140,000 BTC valued at $3.631 billion, against a higher purchase price of $4.206 billion. This mismatch in value versus cost indicated a 14% depreciation in their investment. Interestingly, if the company chose to hold ethereum (ETH) at that time in June 2023, it would have been ahead by 54%. Now while Microstrategy’s current bet on BTC is prosperous so far, it would have still been more profitable to roll with an ETH portfolio.
Presently, if the firm bought ethereum, Microstrategy’s holdings would be worth $12.912 billion or a profit of $6.946 billion. That does not include the profits the company could also accrue from staking the assets held if the portfolio was based solely on ETH. If staked, the business intelligence (BI) enterprise now calling itself “the world’s first Bitcoin development company,” could have earned $494 million annually.
It’s well known that Michael Saylor and the company will not change its path and choose that specific road, and the hypotheticals of the discussion are merely based on blockchaincenter.net’s “There Is No Second Best” index. During the last trading day on Thursday, however, MSTR shares slid 6.7% against the U.S. dollar. Despite the drawdown on Thursday, shares have gained 14% over the past week and 49% in the past month. The BI firm currently holds the largest sum of BTC out of any publicly listed entity excluding GBTC.
What do you think about Microstrategy’s portfolio gathering billions in gains? Share your thoughts and opinions about this subject in the comments section below.
