- MicroStrategy, adopting a bullish stance towards Bitcoin, drew attention as its shares comfortably closed above $500 on Black Friday.
- As the price of Bitcoin surpassed $30,000, the company strategically purchased an additional 1,045 Bitcoin, bringing its total holdings to an impressive 140,000 Bitcoin.
- Despite financial challenges, MicroStrategy continued its commitment to Bitcoin by acquiring an additional 6,067 Bitcoin for an extra $167 million during this period.
MicroStrategy, which frequently buys and continues to HODL Bitcoin, saw a surge in its shares following the rise in Bitcoin.
MSTR Shares Gaining Momentum After Bitcoin’s Rise
MicroStrategy, embracing a bullish attitude towards Bitcoin, caught attention as its shares comfortably closed above $500 on Black Friday. This marked a significant high not observed since December 2021 and elevated the company’s market value to an impressive $7.33 billion.
The success of MicroStrategy is rooted in its strategy of holding Bitcoin as the main asset. Despite starting the year with a quarterly loss, the share price rapidly doubled within just one month. Michael Saylor, the founder and president of the company, saw the entry into Bitcoin in August 2020 as a strategic hedge against inflation. This move proved prescient in showcasing the extraordinary dynamics of the cryptocurrency market.
Expressing optimism, Saylor said, “So we’re all pretty bullish for the next 12 months. Demand will increase, supply will shrink, and this is a quite extraordinary situation in the history of Wall Street.” This optimism was based on positive developments expected for MicroStrategy in the following period. In April, MicroStrategy’s Bitcoin holdings became profitable. As the price of Bitcoin exceeded $30,000, the company strategically purchased an additional 1,045 Bitcoin, bringing its total holdings to an impressive 140,000 Bitcoin.
This strategic accumulation was supported by lowering the average purchase price to $29,803 despite the initial investment exceeding $4 billion. The second-quarter earnings report resulted in a $24 million Bitcoin impairment charge. However, MicroStrategy returned to profitability as a company. It stood out as the largest publicly traded company holding Bitcoin on its balance sheet and continued strategic acquisitions, accumulating a total of 152,800 Bitcoin valued at $4.4 billion.
Commitment to Bitcoin despite market challenges
During this period, a noteworthy trend emerged. The shares of companies exposed to Bitcoin outperformed the cryptocurrency, which had already shown an 87% increase within the year. This demonstrated that companies like MicroStrategy not only influenced the cryptocurrency sector but also had a growing impact on overall market performance. MicroStrategy’s latest financial report, announced in early November, revealed a net loss of $143.4 million.
This represented a significant increase from the $27 million loss in the same period the previous year. Despite financial difficulties, MicroStrategy maintained its commitment to Bitcoin by acquiring an additional 6,067 Bitcoin for an extra $167 million during this period. Holding approximately 0.75% of the total circulating supply of Bitcoin currently, MicroStrategy remains a significant asset in the cryptocurrency space. This situation encapsulates a story that outlines the tragedy and strategic vision of MicroStrategy’s evolving landscape in cryptocurrency investments.
Despite financial challenges, the company’s commitment to Bitcoin as a long-term investment remains unchanged. Its strategic position in the cryptocurrency market and the continuous accumulation of digital assets solidify MicroStrategy’s role as a significant influencer shaping the tragedy of its cryptocurrency investments.
