MicroStrategy’s Bitcoin stash back in profit with BTC price above $30K
The software company led by Michael Saylor has accumulated $132 million in unrealized profits from its investment in Bitcoin.
investograph 
MicroStrategy's Bitcoin holdings, which had turned unprofitable in July, have become profitable again as Bitcoin crossed the $30,000 mark. As of October 23, MicroStrategy held 158,245 BTC, with a total value of $4.847 billion, resulting in around $132 million in paper profits compared to their initial investment. The company had purchased Bitcoin at an average cost of $29,870 per coin, and this price increase has generated profits of at least $130 per coin.
MicroStrategy began acquiring Bitcoin in 2020 and increased its purchases in 2023, recovering from substantial losses caused by events like the United States Federal Reserve's interest rate policy and high-profile crypto-related bankruptcies. In September 2023, the company obtained 5,444 BTC by raising funds, mirroring its approach from earlier in the year when they acquired approximately 12,333 BTC through a capital raise.
Michael Saylor, the co-founder and chairman of MicroStrategy, has shared data highlighting Bitcoin's outperformance compared to traditional assets since the company adopted its cryptocurrency acquisition strategy in August 2020.
However, while Bitcoin's price has recovered, there are concerns about potential downside risks. Bitcoin has struggled to establish a clear bullish trend since May 2022 and faces resistance in the $32,000 range. The daily relative strength index (RSI) for Bitcoin is currently overbought, which could signal a price drop or consolidation in the coming weeks. A correction scenario could see Bitcoin's price retreat to its 50-day exponential moving average (50-day EMA) near $27,720 in November, representing a 10% decline from current levels.
On the positive side, the potential approval of a Bitcoin exchange-traded fund (ETF) in the U.S. serves as a strong bullish factor. CryptoQuant suggests that if a Bitcoin ETF is approved, it could increase the market's net capitalization by $155 billion, potentially driving the price of Bitcoin to $50,000 to $73,000 in 2024. This would be advantageous for MicroStrategy, which is committed to its Bitcoin strategy, even if a Bitcoin ETF is approved.
