Michael Saylor’s MicroStrategy (MSTR) Massive Bitcoin Bet Crosses $1B in Unrealized Profit
MicroStrategy, the business software company led by Executive Chairman Michael Saylor, has seen its unrealized gains from Bitcoin (BTC) soar to over $1.1 billion, representing a 25% increase over the total investment. The company’s Bitcoin holdings, totaling more than 158,000 bitcoins valued at $5.7 billion, reached this milestone as the cryptocurrency surpassed $37,000 for the first time since May 2022.
MicroStrategy acquired this substantial Bitcoin position over a three-year period through investments from company funds and proceeds from bond sales. The current valuation of these holdings now accounts for over 80% of MicroStrategy’s $7.1 billion stock market capitalization. Notably, the cumulative cost of acquiring these bitcoins stands at $4.6 billion, according to data from Bitcoin Treasuries, significantly exceeding the holdings of the next largest institutional holder, Marathon Digital, which possesses 13,000 bitcoins valued at $500 million at current prices.
MicroStrategy’s most recent publicized Bitcoin purchases occurred just before September 24, involving the acquisition of 5,445 bitcoins for approximately $150 million at an average price of $27,053 per bitcoin. The surge in Bitcoin’s value is attributed to growing optimism that U.S. regulators will approve exchange-traded funds (ETFs) holding BTC, a development experts anticipate will lead to increased investment in the leading cryptocurrency.
This optimism was further fueled by a recent report from CoinDesk, indicating that the Securities and Exchange Commission is in discussions with Grayscale Investments regarding the details of its application to convert its bitcoin trust, GBTC, into a bitcoin ETF. Grayscale Investments is affiliated with CoinDesk’s parent company, DCG, heightening expectations for positive regulatory developments in the cryptocurrency market.
