MicroStrategy Continues To Rake In More Bitcoin $900M Profit Rolls In

MicroStrategy Continues To Rake In More Bitcoin $900M Profit Rolls In

Key Insights

  • MicroStrategy, the largest institutional Bitcoin holder in the world, has purchased another 155 Bitcoins, increasing its holdings to 158,400 BTC.
  • MicroStrategy is bullish on Bitcoin, believing it to be the best treasury reserve asset and the solution to the store of value problem.
  • MicroStrategy is in profit on its Bitcoin holdings, with an average purchase price of $29,586 per Bitcoin
  • More public companies are HODLing Bitcoin, with 71 major entities now owning 1.9 million BTC or 9.2% of the total supply.

MicroStrategy, one of the largest institutional holders of Bitcoin has announced another massive Bitcoin purchase.

If you aren't new to the blockchain and crypto space, you'd know by now that MicroStrategy is one of the biggest institutional Bitcoin holders in the world.

According to a recent announcement tweet on X, however, the Virginia-based business intelligence firm has increased its Bitcoin holdings by another 155 Bitcoin, purchased at about $5.3 million in October.

Why MicroStrategy Is Bullish on Bitcoin?

MicroStrategy is one of the largest public companies that have invested heavily in Bitcoin.

According to Buy Bitcoin Worldwide,  Microstrategy is the largest single Bitcoin holder in the world by a large margin.

Largest Bitcoin holders
Largest Bitcoin holders

Data shows that Microstrategy holds about 158,400 Bitcoin, while the second largest holder, Marathon Digital holds about 13,726.

This indicates that Microstrategy's Bitcoin holdings are 11.5 times larger than the next in line.

So far, the company's chairman and founder, Michael Saylor, has been one of the biggest and most vocal advocates of Bitcoin.

He has also influenced other corporate leaders to follow his example. According to Saylor, "Bitcoin is the world's best treasury reserve asset"

Saylor has also praised Bitcoin as "the solution" to the store of value problem faced by "every individual, corporation, & government on earth".

How Much Bitcoin Does MicroStrategy Own?

According to the company's Q3 2023 financial results and from sources, MicroStrategy holds about 158,400 BTC acquired for $4.69 billion.

The average price for the company's holdings also stands at about $29,586 per Bitcoin, as of 31 October.

This means that the company has added 6,067 BTC to its portfolio for $167 million since July 2023, despite the harshness of the last crypto winter.

Judging by the company's holdings, its average Bitcoin purchase price of $29,586 per Bitcoin is significantly lower than the current market price of $35,350.

This means that the company is now almost a billion dollars, or about $900 million in profit at the time of writing.

However, according to the company's Q3 report as well, Microstrategy recorded a net loss of about $143.4 million, despite its revenue increasing by 3% year-over-year to $129.5 million.

This $143.4 million net loss was incurred because of "impairment charges" related to its Bitcoin holdings, which are accounted for as intangible assets under GAAP.

Microstrategy's stock price
Microstrategy's stock price

The company's stock price (MSTR) on Nasdaq did not seem to be affected by its Q3 results, as it was trading at $437.28 at the time of writing.

More Public Companies HODL Bitcoin

MicroStrategy is not the only public company that has been buying or holding Bitcoin steadily.

According to Bitcoin Treasuries, there are currently 71 major entities that collectively own 1.9 million BTC or 9.2% of the total supply.

Bitcoin's treasuries
Bitcoin's treasuries

Among these companies, MicroStrategy is the largest public Bitcoin whale, followed by Tesla and Marathon Digital Holdings.

According to Buy Bitcoin Worldwide, Elon Musk's Tesla owns 10,725 BTC, worth about $379,559,573 as of the time of writing.

Other notable public companies that have invested in Bitcoin include Coinbase, Hut 8 Mining, Galaxy Digital Holdings, Square, and Twitter.

Why Is Bitcoin Rallying?

The idea that several major companies are spending billions on Bitcoin is one of the main factors that have contributed to its recent bull run.

In October alone, several major events have boosted the confidence and demand for the leading cryptocurrency.

Firstly, the launch of the first Bitcoin Strategy ETF by ProShares on October 19 attracted over $1 billion in assets under management in its first week.

IntoTheBlock also recently stated in this tweet that in the last 7 days, Bitcoin 'whales have added about 18,924 BTC to their portfolios.

Bitcoin's number of large holders increases
Bitcoin's number of large holders increases

This figure adds up to about $650 million at today's prices and shows that institutional investors, as well as whales, are becoming more interested in the long-term prospects of Bitcoin.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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