Company that owns the most bitcoins continues to rise in earnings and shares

After a long cryptocurrency winter, MicroStrategy is now profiting from its Bitcoin investments. In total, the company founded by Michael Saylor has 140,000 bitcoins in cash.

In direct conversion, the amount is equivalent to R$21.2 billion and the success of his strategy, no doubt, can not only influence but has already influenced other giants of the US industry.

One of these titans that followed in MicroStrategy’s footsteps was Tesla, a company led by Elon Musk. In February 2021, the electric car maker bought $1.5 billion in Bitcoin to make its money.

While still the fourth publicly traded company with the most bitcoins, Tesla has not followed the same holding strategy as MicroStrategy. That is, it ended up selling a good chunk of that amount in recent years.

MicroStrategy reaps profits from its multi-billion dollar investment in Bitcoin and shares soar

Since Michael Saylor adopted the “buy all possible bitcoins” strategy for his company, MicroStrategy’s stock has had a strong relationship with cryptocurrency.

Between August 2020 (date of first Bitcoin purchase) and February 2021, the company’s stock rose 800% as BTC approached $60,000.

However, his shares also rode the ensuing cryptocurrency winter, trading lower for about two years. But even at a loss, they remained more expensive than compared to “MicroStrategy’s pre-Bitcoin era.”

The reason may be the quest for exposure to Bitcoin, albeit indirectly, by other giants who do not have access to a cash Bitcoin ETF in the US.

MicroStrategy Shares (MSTR). In the spotlight, the period when the company began accumulating bitcoins, increasing both the price and volume of its shares on Nasdaq.

Now, with Bitcoin’s stellar first quarter, MicroStrategy shares are already up 130%. In the last 24 hours, the high is over 15%.

The reason is simple. Michael Saylor’s company bought 140,000 bitcoins at an average price of $29,803, and turned positive (10) this Monday when Bitcoin crossed $30,000.

Tesla followed a different strategy

Meanwhile, Tesla, Bitcoin’s fourth-largest holder, has chosen a different strategy than MicroStrategy. In July last year, Elon Musk claimed that Bitcoin was just a “side show”. That is, the billionaire does not have as much enthusiasm for Bitcoin as Saylor.

Still holding 10,725 bitcoins of the 40,000 BTC it initially purchased, Tesla acquired its coins for an average price of $33,000. That is, it is close to profit.

Ultimately, many believe that Bitcoin is a long-term investment, and Saylor proves it. On the other hand, Tesla’s accounting is also followed by other companies. After all, not everyone succeeds in holding reserves for so many years, with needs such as cash flow.

Source: Live Coins

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