Business intelligence and Fortune 500 company Microstrategy’s Bitcoin (BTC) investment has turned green again as BTC broke past the critical resistance of around $29,000 to record a new 10-month high of $31,163.
Microstrategy started investing in Bitcoin in the second quarter of 2020 when the BTC price was trading around $10,000. Since then, the business intelligence firm had made a series of BTC purchases over the period of two years. The firm has accumulated a total of 140,000 Bitcoin acquired for nearly $4.17 billion at an average price of $29,803 per BTC.
MicroStrategy co-founder Michale Saylor introduced the Bitcoin strategy as a treasury hedging asset over the United States dollars. Apart from holding BTC personally and on the company’s balance sheet, Saylor also convinced several public companies to accumulate BTC on their balance sheets, including the likes of Tesla, SpaceX and a dozen others.
The Bitcoin bet made by the Fortune 500 company looked lucrative throughout the bull market in 2021. However, a prolonged crypto winter in 2022 fueled by multiple crypto contagions brought upon by the collapse of leading crypto unicorns, crashed BTC price by over 70%. The same Bitcoin bet that looked lucrative in 2021 attracted a lot of flak from crypto critics as MicroStrategy’s Bitcoin investment was at a 50% loss at the peak bear market in 2022.
However, Saylor always maintained that they had full confidence in Bitcoin’s underlying fundamentals and they would continue to invest in the top cryptocurrency. In an interview with Cointelegraph, Saylor said that a Bitcoin investment should be judged from a 4-year price cycle rather than based on one bear or bull market.
Related: MicroStrategy adds another 1,045 Bitcoin to its growing crypto treasury
After a disastrous 2022, BTC price has shown strength throughout 2023, with the price seeing over a 55% increase in the first quarter of this year. Bitcoin price has closed above the previous month's high three months in a row, a sign considered to be a bullish market indicator and an indication of another bull run on the horizon.
Bitcoin has outperformed most traditional stocks and bonds this year and has eclipsed the losses incurred from the crypto contagions caused by FTX and Terra-Luna saga.
Magazine: Crypto winter can take a toll on hodlers’ mental health
Title: Microstrategy Bitcoin bet turns green as BTC price climbs to 10-month high
Sourced From: cointelegraph.com/news/microstrategy-bitcoin-bet-turns-green-as-btc-price-climbs-to-10-month-high
Published Date: Tue, 11 Apr 2023 13:59:17 +0100
