MicroStrategy’s commitment to Bitcoin began in 2020 and escalated in 2023 as its price corrected. After the crypto market experienced extreme losses due to the Fed’s interest rate policies and the crypto sector bankruptcies.
Their Bitcoin holdings have surged back into profitability as Bitcoin broke through the $30,000 resistance. It marks a significant milestone for the software company turned one of the largest crypto holders.
MicroStrategy’s Bitcoin treasury now boasts a staggering 158,245 BTC. It is valued at a staggering $4.847 billion. The holdings have gained at least $132 million from the original investment.
Source: BlockchainCenter.Net
The average purchase price stands at $29,870 per Bitcoin. Each coin is contributing at least $130 to their profits, sending MicroStrategy officially in “green.”
MicroStrategy’s previous Bitcoin purchases
In September 2023 MicroStrategy acquired more coins, increasing its Bitcoin portfolio by 5,444 BTC. They completed this transaction by raising capital. The same acquisition strategy was successfully used earlier in the year, when they bought approximately 12,333 BTC.
Michael Saylor, the co-founder and chairman of MicroStrategy, proudly showcased data showing Bitcoin’s impressive performance. He compared Bitcoin to traditional assets from the company started crypto investing in August 2020.
Source: Michael Saylor on X (Twitter)
Bitcoin’s troubles
However, the road ahead for MicroStrategy’s Bitcoin investment is not without challenges. Bitcoin has been struggling to establish a consistent bullish trend since crossing the $30,000 mark in May 2022. The risk of MicroStrategy going back in “red” still looms.
Technical analysis reveals troubling signs. Bitcoin’s daily relative strength index (RSI) currently at its most overbought levels since January 2023. RSI is generally considered overbought if the value is above 90 (or 80, depends) and underbought if the value is below 20.
Source : Trading View
This could potentially trigger a sell-off or it can start a sideways trajectory. Bitcoin’s price possibly moving toward sits 50-day exponential moving average (50-day EMA) of $27,720 in November. It is a potential 10% decrease from its current levels.
However, new doors could open if Bitcoin maintains $30,000 as the new support level. It can push itself to its next major resistance point level last seen in May 2022 at $32,000.
Fundamental perspective is another ray of hope. The potential approval of a Bitcoin exchange-traded fund (ETF) in the U.S. has the crypto community buzzing with excitement. According to CryptoQuant, such an approval could inject at least $155 billion into the Bitcoin market cap. They think that this development can push Bitcoin’s price to heights of $50,000 to $73,000 by 2024.
MicroStrategy has been committed to its BTC course despite the hype of a Bitcoin ETF. Their journey in the world of crypto continues to attract attention as the keep buying more Bitcoin.
