On November 1, Michael Saylor announced his company’s latest bitcoin acquisition. On that date, MicroStrategy purchased an additional 140 BTC, giving the company a total of 158,400 bitcoins on hand.
With Bitcoin hitting $37,000 this week, MicroStrategy’s unrealized gains from its “Bitcoin Strategy” have soared, silencing any critics who doubted the thesis during the bear market.
Saylor didn’t even celebrate his company’s revenues. On his social networks, the billionaire remains the same and posts images about Bitcoin generated by artificial intelligence, just as he did during the cryptocurrency winter.
“Focus on Bitcoin.”
Concentrate on #Bitcoin. pic.twitter.com/tS0pfU3Ujy
— Michael Saylor⚡️ (@saylor) November 10, 2023
MicroStrategy Investments Show Billion-Dollar Gains After Bitcoin Surges in Value
MicroStrategy has purchased 158,400 bitcoins for $4.68 billion (R$23 billion) in recent years. In other words, an average price of US$28,586 per BTC. With Bitcoin’s recent surge to $37,000, that means Michael Saylor’s company made $7,414 from each of those bitcoins.
Therefore, MicroStrategy benefits from $1.17 billion (R$5.8 billion), an unrealized gain of 26%. In total, the company holds approximately R$29 billion in Bitcoin, making it the publicly traded company with the largest exposure to BTC in the world.
Last month, Saylor himself published a comparative chart between the returns of Bitcoin and other assets, such as gold, stock baskets and other investments. Over the past 12 years, BTC has performed best in 9 of them, with an average annual gain of 147.5% over the period.
“There is no second best.”
What does MicroStrategy expect for the future of Bitcoin?
After holding steady through a long bear market, MicroStrategy is finally breathing with profits of R$5.8 billion. Looking ahead, Michael Saylor was excited about the possible adoption of spot ETFs in the US and the Bitcoin halving that will take place in mid-April 2024.
“Demand must at least double. So the only thing that will change there is the price.”
“There are three things that are great catalysts to cause acceleration”Saylor continued on Twitter, also referencing Bitcoin’s use by banks and its use in corporate cash registers. “These three things don’t bring us to $500,000, but to $5 million per coin.”
I discuss how companies can escape the destructive cycle of the conventional corporate finance playbook, preserve their capital, keep pace with the Magnificent Seven, and create shareholder value using a #Bitcoin Strategy similar to $MSTRof @cvpayne. pic.twitter.com/apXEYbD46O
— Michael Saylor⚡️ (@saylor) November 6, 2023
Since MicroStrategy honed its ‘Bitcoin Strategy’, its shares have risen 240%, surpassing Bitcoin’s own gains over the period.
If BTC reaches $5 million per unit, as predicted by Saylor, your company will have the equivalent of $792 billion ($3.9 trillion) in cash. Therefore, Saylor could become the world’s first trillionaire, in dollar terms.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
