MicroStrategy's Bitcoin Investments Generate $800M Profit Despite Stock Downtrend in 2024
Summary:
In 2024, US software technology firm MicroStrategy netted over $800 million from Bitcoin (BTC), bringing the firm's total BTC assets up to approximately $8.832 billion. However, despite BTC's upward trend, the company's stock has fallen by more than 15% since the start of the year. CEO Michael Saylor plans to utilize a recent $216 million sale of company options to enhance his own BTC investments.
MicroStrategy, a U.S-based software firm, scored a profit of over $800 million from Bitcoin (BTC) in 2024, according to statistical data from Bitcoin Treasuries. The organization, recognized as a leading corporate investor in BTC, has seen notable returns in 2024. Particularly, the recent surge in BTC prices has been financially favorable for MicroStrategy which possesses the world's biggest corporate Bitcoin treasury. The last addition to the firm's Bitcoin cache was done on December 27, 2023, bringing the total to 189,150 BTC. Valued at around $8.832 billion on January 9, this indicates an increase of $840 million since January 1. This remarkable rise is just one instance of MicroStrategy's impressive Bitcoin turnaround. Most notably, on January 8, when BTC/USD marked a $3,000 daily spike, the company had approximately $600 million in returns for 2024. Following their initial Bitcoin purchase at slightly above $10,000 in August 2020, the company recently acquired another 14,620 BTC, thereby bringing their average investment to $31,168 per coin. Meanwhile, MicroStrategy CEO, Michael Saylor, holds more than 17,000 BTC and could potentially join the global rich list if Bitcoin's upward trend continues. However, he would need the Bitcoin price to exceed $1 million to surpass current leader Elon Musk. Contrarily, MicroStrategy's stock has seen a dip of over 15% from the start of the year, this is despite BTC's bullish trend. Saylor recently sold $216 million worth of company options, planning to utilize the liquidity to further increase his BTC share. As 2024 kicked off, Saylor shared the relative returns of MSTR with stocks, gold and Bitcoin on X (formerly Twitter), highlighting the superior performance of the former. He concluded that Bitcoin tremendously benefitted MicroStrategy in the past year. However, this article does not provide investment advice or recommendations, and readers are counseled to conduct personal research before making a decision, given the risky nature of trading and investing.
Published At
1/9/2024 6:38:33 PM
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