MicroStrategy, a business intelligence firm that has made headlines for its heavy investment in Bitcoin, has finally returned to floating profit after ten months.
The company has been investing in Bitcoin since August 2020 and has bought a whopping 140,000 BTC at an average purchase cost of $29,803.
Additionally, Michael Saylor, the company’s CEO, has thus far been an outspoken advocate for BTC and has regularly justified the company’s crypto investment.
However, the recent surge in the value of BTC has boosted MicroStrategy’s financial position, with the firm’s stock (MSTR) having gained 120.94% this year.
MicroStrategy’s Bitcoin Holdings & Purchase History
According to a research report, MicroStrategy has been gradually increasing its holdings in Bitcoin since December 2020. In December, the company purchased 29,646 BTC for approximately $650 million at an average price of around $21,925 per coin.
At that time, around $1.125 billion worth of BTC totaling 70,470 were held by MicroStrategy, with an average purchase price of $15,964 per coin.
Since then, the company has continued to add to its Bitcoin holdings. In February 2021, MicroStrategy purchased an additional 19,452 BTC for almost $1.026 billion at an average price of around $52,765.
In June 2021, the firm bought 13,005 BTC for approximately $489 million at an average price of around $37,617 per coin.
Later in June 2021, when the company signed a public market selling agreement with agent Jefferies LLC to periodically issue common shares with a total market value of no more than $1 billion, MicroStrategy demonstrated its dedication to its Bitcoin investment.
At that time, MicroStrategy possessed 114,042 BTC in total, valued at around $3.16 billion, and purchased on average for about $27,713 each.
The company continued to increase its holdings in 2022. As of March 2023, MicroStrategy held a total of 138,955 BTC at an average purchase price of approximately $29,817, for a total cost of $4.15 billion.
MicroStrategy persists with its Bitcoin investment despite crypto volatility. By March 2023, it had $2.2B long-term debt, including $650M senior convertible notes due on Dec 15, 2025. These bonds pay interest semi-annually at a coupon rate of 0.75%.
Nevertheless, the controversial decision of the company to invest in Bitcoin has been noteworthy, but the recent appreciation in the value of BTC has positively impacted the company’s financial standing.
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