MicroStrategy’s Bitcoin Profit Surges to $3.57 Billion as BTC Price Soars

MicroStrategy has seen its Bitcoin profit surge to almost $4 billion as the price of the cryptocurrency soars. 

The company, which has been actively acquiring Bitcoin since August 2020, is currently the world’s largest publicly traded corporate holder of digital assets, with a staggering 190,000 BTC in its treasury. MicroStrategy’s latest Bitcoin acquisition was in January of this year when the firm bought 850 Bitcoins for $37.5 million.

According to data from Saylor Tracker, a reliable service monitoring MicroStrategy’s Bitcoin acquisitions, the recent surge in Bitcoin’s price to $50,000 has propelled the value of MicroStrategy’s holdings to a staggering $9.48 billion. Remarkably, with Bitcoin’s current price at $49,650, MicroStrategy’s cost basis for its Bitcoin holdings is $31,464.74 per coin. This means the firm is currently sitting on an unrealized profit of a staggering $3.505 billion.

Michael Saylor, MicroStrategy’s co-founder and Executive Chairperson, has shown no signs of abating with his Bitcoin purchases. In an interview with CNBC on Monday, Saylor stated that there is “10 years of pent-up demand” for Bitcoin ETFs and that the emergence of these ETFs has driven up demand for the digital asset.

Saylor also stated that Bitcoin’s unique characteristics, such as being digital, global, and uncorrelated to traditional risk assets, make it a natural addition to investment portfolios. He added that there is a significant supply-demand imbalance in the market, with ten times as much demand coming through the ETFs as there is supply from natural sellers, such as miners.

MicroStrategy’s success with Bitcoin has led the company to rebrand itself as a “Bitcoin development company.” According to Saylor, this decision was a natural one, given the company’s success with Bitcoin and its unique status as the largest corporate holder of the digital asset.

“It makes for us to call ourselves a Bitcoin development company in the same way you see a real estate development company or petroleum development company…,” said Saylor.

That said, with Bitcoin’s price continuing to soar, the company’s position as the world’s single largest corporate holder of digital assets could continue unchallenged despite the emergence of various spot ETF issuers, even as it plans to acquire more coins.

“We are going to develop software, generate cash flow [and] leverage the capital markets, all in order to accumulate more Bitcoin for our shareholders and to promote the growth of the bitcoin network given the fact that the majority of enterprise value is now based upon those bitcoin related activities.” He added.

Meanwhile, El Salvador’s Bitcoin holdings have also performed well amidst the recent price upsurge. At press time, the country’s stash of 2,833 BTC was valued at $140,383,025, generating unrealized profits of $20,119,365, as per data from Nayibtracker.