Bitcoin Breaks $30,000 Barrier - MicroStrategy's Investment Hits Break-Even
Bitcoin is currently trading at $30,229, surpassing MicroStrategy's average purchase price of $29,803.
MicroStrategy's massive Bitcoin holdings have officially reached breakeven after Bitcoin reclaimed the $30,000 mark on April 11.
The publicly traded company led by Michael Saylor, which holds the largest Bitcoin stash in the world, has been "underwater" on its Bitcoin investments since June 2022. At that time, the collapse of the lending platform Celsius and the failure of Three Arrows Capital had plunged the market into turmoil. This was compounded by aggressive interest rate hikes from the Federal Reserve aimed at curbing inflation.
Despite this, MicroStrategy remained steadfast in its long-term Bitcoin investment strategy. Over the past two weeks, Saylor's company has made two additional purchases, bringing its total Bitcoin holdings to 140,000 BTC, valued at over $4.17 billion at the time of purchase. The first purchase (March 27) involved spending $150 million to acquire 6,455 BTC, and the second (April 5) added another 1,045 BTC (worth $29.3 million) to its portfolio.
As reported by Coin68, Bitcoin successfully broke through the previous $30,000 resistance level on the morning of April 11, after being stuck around the $27,000 range for an extended period. BTC has now temporarily set a new high for 2023 at $30,550, the highest level since June of last year. This milestone officially brings MicroStrategy's investments to breakeven.
1H Chart of BTC/USDT on Binance at 08:50 AM on April 12, 2023
Currently, MicroStrategy's average BTC purchase price is $29,803, and the company's investment is valued at $4.25 billion, reflecting a near 2% profit.
Historical Bitcoin Purchase Data of MicroStrategy. Source: Saylor Tracker
MicroStrategy's stock has surged 114% year-to-date, outperforming Bitcoin, and is trading at $312.78. CEO Michael Saylor has noted that despite Bitcoin's challenging periods, MicroStrategy's stock performance since the company began buying Bitcoin in August 2020 has outpaced that of major tech giants like Google, Apple, Microsoft, and Amazon.
