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 Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
