- The Bitcoin price has risen above MicroStrategy’s median purchase price of $29,803.
- Since June 2022, Michael Saylor’s company had lost money on its Bitcoin purchases.
- Two recent acquisitions of the software company have caused the average purchase price to decline.
MicroStrategy’s Bitcoin holdings are in the green, at least on paper, thanks to the latest advance in the cryptocurrency market.
According to Binance statistics via TradingView, Bitcoin was trading at $30,103 as of 4:40 a.m. EST, up 1.6% from the previous 10 hours. The cryptocurrency has seen its biggest quarterly growth in two years and is already up 82% year-to-date. The possibility of interest rate hikes peaking amid banking stress in the US and across Europe has been linked to rising Bitcoin prices.
The Bitcoin price has risen above MicroStrategy’s median purchase price of $29,803 as a result of the price explosion. Although in theory, the company may have gone up as a result, the cushion is only a few hundred dollars. Since the company has a considerable amount of Bitcoins, selling them quickly would probably cause the price to drop noticeably.
This means that even if the company wanted to, it probably couldn’t sell all of its Bitcoins for a profit so soon.
Since last June, MicroStrategy’s Bitcoin assets have been losing money. The bankruptcy of cryptocurrency hedge fund Three Arrows Capital and the collapse of cryptocurrency lender Celsius then caused markets to fall even further. The US Federal Reserve raised interest rates during this time to counter rising inflation.
The average price paid for MicroStrategy has recently decreased due to Bitcoin transactions. MicroStrategy increased its bitcoin holdings by 1,045 on April 5 after announcing on March 27 that it had bought 6,455 bitcoin.
According to data from The Block Research, MicroStrategy and its subsidiaries currently own about 140,000 bitcoins, with a total purchase price of about $4.17 billion. At $312.78, the company’s shares have outperformed Bitcoin and are up 114% year-to-date.
