MicroStrategy, a company known for its bullish stance on Bitcoin, celebrated Black Friday positively. The firm closed its shares above $500, a level last seen in December 2021. This surge elevated the company’s market capitalization to $7.33 billion, as reported by Nasdaq.
MicroStrategy’s enduring commitment to Bitcoin has proved highly profitable. Despite starting the year with a quarterly loss, the company witnessed its stock price doubling within a month. It stands as one of the largest institutional holders of Bitcoin. Founder and chairman, Michael Saylor, initiated the strategy back in August 2020 as a hedge against inflation.
Saylor expressed optimism about the future, stating, “That’s why all of us are fairly bullish over the next 12 months. Demand’s going to increase, supply’s going to contract, and this is fairly unprecedented in the history of Wall Street.”
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Microstrategy’s Buying Spree Strategy
The positive news continued as, by April, MicroStrategy’s Bitcoin holdings turned profitable. With the acquisition of an additional 1,045 Bitcoins, increasing its total holdings to 140,000 Bitcoins. The average purchase price dropped to $29,803 per coin, with a total digital asset value exceeding $4 billion.
The company reported a $24 million Bitcoin impairment charge in its second-quarter earnings report. But it returned to be profitable as a whole. MicroStrategy continued its BTC purchases, accumulating 152,800 coins valued at around $4.4 billion.
Despite a net loss of $143.4 million in its most recent quarterly report released in early November (a larger loss than the $27 million reported the previous year), MicroStrategy continued its Bitcoin acquisitions, adding another 6,067 Bitcoins for $167 million.
Today, MicroStrategy holds approximately 0.75% of Bitcoin’s total circulating supply, firmly establishing itself as a significant institutional player in the cryptocurrency market.
