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Microstrategy makes unrealised gains of more than $170 million on Bitcoin holdings

Microstrategy makes unrealised gains of more than $170 million on Bitcoin holdings

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Microstrategy, the largest corporate holder of Bitcoin, is sitting on unrealised gains of well over $100 million for its Bitcoin holding position.

A quick turn in fortune

Back at the lows of under $16,000, many were taunting Michael Saylor, Executive Chairman of Microstrategy, for his company’s bitcoin holding, which was at that time well under water. However, fast forward around 11 months and the Microstrategy bitcoin holding has now entered into profit.

Unrealised gains

According to the International Business Times, once the bitcoin price had surpassed the $30,000 level, the unrealised gains were of the order of $174 million, with Microstrategy and its subsidiaries holding an average of 158,245 BTC, equating to around $4.82 billion in total at today’s price.

To give the exact figures, taken from Microstrategy’s September regulatory filing, the entire holding of 158,245 bitcoins were purchased for approximately $4.68 billion, at an average price of around $29,582 per bitcoin. 

A strategy of holding and purchasing more

The last big stash of bitcoins that Microstrategy bought was also in September, when the corporate giant purchased a further $147 million worth of bitcoin

This followed a statement by Michael Saylor earlier in August of this year, when he said:

“Our goal is to accumulate as much bitcoin as we can on behalf of our shareholders,

Given that the Microstrategy share price was up more than 200% at the time, Saylor remarked that a potential sale of shares could be used to buy more bitcoins.

“Our strategy is levered long, offer a yield, don’t charge a fee, and then actively manage our position and actively manage acquisitions and financings between equity, debt, and cash flows in order to get the best result for our shareholders.”

With the bitcoin price having hit a new local high of around $31,000 early on Monday and Microstrategy shares sitting comfortably at $348, times are good and looking even more promising for Saylor and his company looking into 2024.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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