MicroStrategy’s Bitcoin Holdings Nearing Breakeven Point Amidst Crypto Rally
The value of Bitcoin is approaching the average purchase price of the largest public holder of the cryptocurrency, MicroStrategy.
As of December 31, MicroStrategy held 132,500 bitcoins with an original cost basis of almost $4 billion, equating to an average cost of around $30,137.
Bitcoin’s price rose approximately 26% from a week ago, and at 3 pm ET on Monday, it was valued at about $28,200. MicroStrategy reported a net loss of $250 million during the fourth quarter of 2022, with its digital asset impairment charges amounting to $198 million during the same period.
Despite this, the company’s executives announced on an earnings call last month that they would continue with their long-standing strategy of holding bitcoin on their balance sheet.
Although analysts have criticized MicroStrategy for its buying and holding strategy during market volatility, the recent increase in Bitcoin’s value has helped to close the company’s unrealized losses from last November, leading to growing interest in decentralized finance and other crypto protocols.
READ MORE: Bitcoin: A Steady and Gradual Increase in Price Would be Better, According to Tone Vays
One co-portfolio manager of the Amplify Transformational Data Sharing ETF (BLOK) stated that MicroStrategy’s CEO, Michael Saylor, has made it clear that the company will remain a strategic long-term bitcoin owner.
MicroStrategy’s stock price was up approximately 80% year-to-date, although it was down roughly 2% at $261.50 at 3 pm ET on Monday.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
