MicroStrategy's Bitcoin Investment Portfolio Returns to Profit

As of now, billionaire Michael Saylor's company, MicroStrategy, holds 158,245 Bitcoins (BTC) after over three years in the market.

MicroStrategy's massive Bitcoin investment portfolio has turned profitable after Bitcoin reasserted itself above the $35,000 mark this morning (October 24).

Holding Bitcoin has been a "nightmare" for the public company, enduring continuous losses since mid-last year. During that time, a slew of cryptocurrency scandals (LUNA - UST, Three Arrows Capital, Celsius, FTX...) compounded by global economic downturns pushed Bitcoin prices nearly 80% below their November 2021 peak. However, approaching Bitcoin Halving and positive ETF signals are currently catalysts for market recovery.

Michael Saylor, former CEO and current Chairman of MicroStrategy, is renowned for his long-term Bitcoin investment strategy. The company has only sold 708 BTC to date, totaling $11 million in December 2022.

Previously in December 2022, MicroStrategy faced losses of up to 45% on this investment, but swiftly turned the tide, executing four new purchases this year:

• March 27, 2023: Initiated the first Bitcoin investment of the year, acquiring an additional 6,455 BTC for $150 million.
• April 5, 2023: Purchased an additional 1,045 BTC valued at $29.3 million, at an average price of $28,016 per BTC.
• June 28, 2023: Invested $347 million to acquire 12,333 more Bitcoins at $28,136 per BTC.
• September 24, 2023: Added 5,445 BTC worth $150 million, at an average price of $27,053 per BTC.

In total, these purchases elevated MicroStrategy's Bitcoin treasury to 158,245 BTC, with an average purchase price of $29,870 per BTC. Altogether, the company has spent $4.72 billion to acquire this Bitcoin stash.

At the current BTC price of $34,310 as of writing, MicroStrategy's Bitcoin holdings are valued at approximately $5.46 billion, representing a profit of around $731 million, or approximately 15.47% return on investment.

MicroStrategy's Bitcoin purchasing history. Source: Saylor Tracker (October 24, 2023)

Compared to the world's second-largest Bitcoin holder, MicroStrategy's position is 14 times larger, according to data from Bitcoin Treasuries.

Ranking of accounts holding the most Bitcoin worldwide. Source: Bitcoin Treasuries (October 24, 2023)

The company also planned to further accumulate $750 million in Bitcoin by August. In a filing with the SEC on August 1, the company disclosed its agreement to sell shares to interested investors, with plans to continue using the proceeds to purchase more Bitcoin.

MicroStrategy's "return to profit" comes as Bitcoin reclaims the $35,000 price threshold this morning, marking its highest level since the Terra crash in May last year.

Bitcoin/USDT 15-minute chart on Binance as of 11:10 AM on October 24, 2023.