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MicroStrategy just made $1bn on its Bitcoin bet. Here’s why it wants to buy more

MicroStrategy just made $1bn on its Bitcoin bet. Here’s why it wants to buy more
MicroStrategy is up by a little over 19.4% on its investment and has $910 million in unrealised profits. Credit: photo_gonzo/Shutterstock
  • Michael Saylor's MicroStrategy started to bet on Bitcoin in 2020.
  • The company's latest earnings indicate the value of its $4.7 billion investment is up.

Happy Thursday!

MicroStrategy co-founder Michael Saylor is possibly Bitcoin’s biggest bull, and his company has made a huge bet on the cryptocurrency’s eventual rise. It may be starting to pay off.

Let’s dive into it.

158,400 Bitcoin

Saylor announced yesterday that MicroStrategy had acquired an additional 155 Bitcoins for $5.3 million in October.

This brings the company’s total holdings to 158,400 Bitcoins, which it acquired for a total cost of almost $4.7 billion, or $29,586 per Bitcoin, the company’s earnings report said.

With Bitcoin currently trading at $35,344, MicroStrategy is up by a little over 19% on its investment and has $910 million in unrealised profits.

MicroStrategy’s Bitcoin holdings are worth about $5.6 billion.

The company said it had acquired 6,067 Bitcoins since the end of June for $167 million, or $27,531 per Bitcoin.

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“Our commitment to acquire and hold Bitcoin remains strong, especially with the promising backdrop of potential increased institutional adoption,” said MicroStrategy Chief Financial Officer Andrew Kang.

“While we continue to grow our strong balance sheet, our Q3 operating results and growth in total revenues reflect the resiliency of our software business,” he added.

Founded in 1989, MicroStrategy was the first publicly listed business to start acquiring Bitcoin as part of its treasury, in August 2020, which paved the way for other tech companies like Tesla to add the cryptocurrency to their own balance sheets.

Bitcoin surged recently due to a mixture of factors — including the hope that US regulators may approve Bitcoin spot exchange-traded fund applications, and worsening global conflicts — driving the price up.

Crypto market movers

  • Bitcoin is up 1.5% in the last 24 hours and trading at $35,344.
  • Ethereum rose by 0.9% in the same period of time, reaching $1,836.
  • Solana and Polkadot are up 10% and 8%, respectively.

What we’re reading

Tom Carreras is a Markets Correspondent at DL News. Got a tip? Reach out at tcarreras@dlnews.com

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