Michael Saylor’s Bitcoin Gamble Pays Off Big – and He’s Doubling Down

• MicroStrategy’s Bitcoin bag of about 158,245 coins that were purchased at an average price of about $29,582 recorded a profit of nearly $200 million as Bitcoin price rallied towards $30.8k over the weekend leading to Monday.
• Backed by key institutional investors like BlackRock Inc., which has applied with the United States SEC to offer Bitcoin spot ETF, MicroStrategy is expected to acquire more Bitcoins in the coming months.

As Bitcoin’s (BTC) price clocked above $30K in the past few days, MicroStrategy Inc. (NASDAQ: MSTR), a leading enterprise analytics platform led by founder and chairman Michael Saylor, saw its holdings shift to profits in millions. As of Monday, during the London trading session when Bitcoin price hovered between $30.5k and $30.8k, MicroStrategy’s Bitcoin holding was worth approximately $4.87 billion. According to the company, it has acquired its Bitcoin holding at an average price of about $29,582, hence putting Saylor’s strategy in a profit of over $192 million.

The company has been a strong Bitcoin supporter throughout the crypto bear market that began in early 2022 with frequent purchases. The company has been working together with key Bitcoin supports including miners and hedge fund managers seeking to double down their investments in the mother coin in the coming few years.

For instance, MicroStrategy is backed by BlackRock Inc., a fund manager with nearly $10 trillion in assets under management (AUM), which has also been pushing the United States Securities and Exchange Commission (SEC) to approve its Bitcoin spot ETF. Notably, MicroStrategy has been buying Bitcoin for BlackRock in order to seamlessly offer a spot ETF once approved.

Michael Saylor’s MicroStrategy is back in profit on its $4.68 billion Bitcoin investment.

* Average purchase price = $29,582
* Current Bitcoin price = $29,925
* Profit = $343 per

They currently hold 158,245 BTC
They are currently $54.27m in profit.

— Whale (@WhaleChart) October 22, 2023

Closer Look at Bitcoin Market Outlook from MicroStrategy’s Perspective

Amid high global inflation caused by the difference in geopolitical tensions, MicroStrategy believes Bitcoin is hope for all investors seeking to protect their funds from depreciation. Moreover, Bitcoin has an inflation of about 1.8 percent and is expected to drop by half during next year’s halving event, which has been identified to trigger a major supply vs demand shock hence resulting in the macro bull run.

Nonetheless, there is risk associated with Bitcoin investment as past performance may not be indicative of future outcomes as most analysts purport.

Following the resilience of Bitcoin compared to other investment products around the world, MicroStrategy’s shares have risen over 145 percent YTD, to trade around $359. Notably, the $4.9 billion company has significantly benefited from the mainstream adoption of Bitcoin in the past few years.

With Bitcoin price projected to rally beyond $100k, after the United States SEC approves the spot ETF applications and the fourth halving takes place around April, the company’s valuation is expected to significantly rise in tandem with the crypto bull market.

The Bitcoin market is expected to gain further adoption as more countries enact crypto-friendly regulations. Furthermore, countries want to tax the booming startups offering Bitcoin and crypto-related services.

Additionally, the Russian vs Ukraine and Israel vs Gaza wars have raised fears of possible funding through digital assets illegally through crypto mixers.

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