The number 1 cryptocurrency in the world has amassed over 82% gains since the beginning of the year.
MicroStrategy (NASDAQ: MSTR) is a major beneficiary in the latest Bitcoin rally that pushed the crypto asset’s price to a new level. While the crypto market was in the red, many crypto-related stocks. MicroStrategy, which Bitcoin holding is worth 140,000, had a tough time before the recent rally. The company bought its first Bitcoin in August 2020, adopting the top cryptocurrency as a primary treasure reserve asset. Since the first purchase of 21,454 BTCs, the business intelligence company has acquired more. The latest purchases in March and April 2023 lowered the company’s average purchase price. Towards the end of March, CEO Michael Saylor announced the acquisition of 6,455 Bitcoin between February 16 and March 23. The chief executive noted that the coins cost an average of $23,238 each. On April 5, MicroStrategy added to its Bitcoin bet after buying 1,045 BTC worth about $29.3 million
Currently, MicroStrategy has a total of 138,955 Bitcoin after spending $4.14 billion on the cryptocurrency. According to Saylor, the company does not intend to sell any of its Bitcoin in the foreseeable future. However, the largest corporate Bitcoin reserves holder has to see a portion of its holdings in December.
MicroStrategy Stock and BTC’s Investment Soars amid Bitcoin Rally
The number 1 cryptocurrency in the world has amassed over 82% gains since the beginning of the year. Bitcoin, which traded at around $16,547 in December, currently trades at $30,129. The coin has added over 6% in the last 24 hours from a low of $28,189. The recent Bitcoin rally that impacted MicroStrategy and its BTC holdings is the biggest quarterly gain in two years. The average price MicroStrategy paid for its Bitcoin holdings is $29,817, which makes the recent rally of advantage to the company. At the current trading price, the business intelligence company is technically up with less than $1,000 per BTC owned.
As MicroStrategy records gains in its investment in Bitcoin, the company’s stock performance also advanced amid the rally. At press time, the company is up 2.21% to $318.71 at premarket trading. This is after MicroStrategy closed up almost 8% to $312.78 due to the Bitcoin rally. Since the year began, the company has increased by 120.94% and has gained nearly 65% in the last three months. MSTR has jumped 36.31% over the past month and 4.62% in the last five days.
Apart from MicroStrategy, Coinbase (NASDAQ: COIN), Riot Platforms (NASDAQ: RIOT), and Hut 8 Mining (NASDAQ: HUT) are crypto-related stocks that surged as Bitcoin’s price improved. Coinbase closed up 7.63%, Riot went up more than 15%, and Hut 8 Mining was nearing 10% at the end of the trading session on Monday.
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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience.
Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
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Ibukun Ogundare