MicroStrategy’s Bitcoin Holdings Boosted by Recent Purchases, Shares Up 114%

Key Points:

• MicroStrategy has been holding a large amount of Bitcoin since last June.
• Recent Bitcoin purchases have lowered the average purchase price for the company.
• Shares in the firm are currently up 114% year-to-date and trading at $312.78.

MicroStrategy’s large Bitcoin holdings have been in the red since last June, but recent Bitcoin purchases lowered its average purchase price. Shares in the firm are up 114% YTD and are trading at $312.78.

MicroStrategy has recently made headlines for its large Bitcoin holdings. According to Coinmarketcap, bitcoin was trading at $30,103, up 6% over the past 24 hours. The cryptocurrency is up 82% year-to-date and recently registered its best quarterly increase in two years. The rise in Bitcoin has been linked to the prospect of interest rate increases peaking amid banking stress in the U.S. and across Europe.

The surge in prices has pushed the price of Bitcoin above MicroStrategy’s average purchase price of $29,803. While that means the company is technically up, it’s only by a few hundred dollars, which is a small buffer. Since the company owns so much bitcoin, it would likely push the price down significantly in the process if it were sold quickly. This means the company probably couldn’t sell all of its bitcoin for a profit if it wanted to.

MicroStrategy’s Bitcoin holdings have been in the red since last June. At the time, the collapse of crypto lender Celsius and the failure of crypto hedge fund Three Arrows Capital propelled the markets down even further. During this time, the U.S. Federal Reserve also increased interest rates to combat rising inflation.

Recent Bitcoin purchases lowered MicroStrategy’s average purchase price. MicroStrategy added 1,045 bitcoin on April 5, following up on a March 27 announcement that stated it had bought 6,455 bitcoin.

MicroStrategy and its subsidiaries now hold approximately 140,000 bitcoins at an aggregate purchase price of roughly $4.17 billion.

Shares in the firm are up 114% year-to-date, outperforming Bitcoin, and are trading at $312.78.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Thana

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