MicroStrategy’s Bitcoin Bet Pays Off, Profits Cross $1.2 Billion!

MicroStrategy Inc (MSTR) closed its trading day at $474.50, with a pre-market jump of $20.99. Dive into the exciting pre-market scene, where lower volume spices up the trading game. Sporting a solid overall score of 60, MSTR shines brighter than 60% of stocks at its current price.

Let’s take a closer look at the numbers that tell the story of MicroStrategy’s recent journey.

Bitcoin Bonanza for Microstrategy!

The stock receives an average Short-Term Technical score of 60, suggesting a neutral trading pattern over the last month. This mixed picture prompts a nuanced evaluation of MSTR’s recent performance and future price forecasts. Surprisingly, despite the downturn, their Bitcoin holdings are $1.2 BILLION in profit. 

MicroStrategy’s loyalty towards Bitcoin is well-known and is celebrating a substantial paper profit exceeding $1 billion as Bitcoin recently surged to a yearly high of over $37,000. This impressive turnaround is a testament to Bitcoin’s resurgence, marking a gain of over 100% this year, fueled by optimism surrounding a potential spot BTC exchange-traded fund (ETF). 

His bet is finally paying off.

Microstrategy’s Q3 Report: Did they hit the jackpot?

According to MicroStrategy’s third-quarter report, the enterprise software company, holding the largest public Bitcoin reserve, acquired 158,400 BTC for $4.68 billion with an average purchase price of $29,586 per coin. With Bitcoin currently trading at $36,428, MicroStrategy is enjoying a 23% gain on each. Beyond its crypto holdings, the company’s stock has surged approximately 160% in 2023, underlining CEO Michael Saylor’s steadfast belief in Bitcoin as a revolutionary monetary network and a potent hedge against inflation. 

What’s the larger vision here?

In a recent CNBC interview, Saylor emphasized that Bitcoin provides corporations with an innovative strategy to preserve capital and create shareholder value by leveraging their balance sheets with BTC.

Bitcoin’s remarkable resurgence, accruing over a 100% gain this year, is intricately linked to the growing optimism surrounding the potential approval of a spot BTC exchange-traded fund (ETF). MicroStrategy’s audacious move into Bitcoin is vividly paying off, with the enterprise software company acquiring 158,400 BTC for $4.68 billion. 

Cashing in on the ETF Hype

MicroStrategy’s BTC position, now nearly three times the size of the debt it took to get it, raises intriguing questions. Is it an ETF craze, or does the company have grander plans for Bitcoin? Each Bitcoin, bought at an average price of $29,586, is now a star performer, boasting a 23% gain. MicroStrategy’s financial strength shines not only in the crypto world but also in the stock market, with a jaw-dropping 160% rise in 2023.

New heights soon

Saylor’s unwavering belief in Bitcoin as a revolutionary force and a powerful hedge against inflation has pushed MicroStrategy to the forefront of the convergence between crypto and traditional finance.

This is a valuable lesson for novice traders and investors – faith and loyalty DOES pay off!