Microstrategy, the dominant holder of Bitcoin, announced yesterday (20th) that it has once again increased its holdings by 11,931 Bitcoins (totaling $786 million), bringing its total holdings to approximately 226,400 Bitcoins.
(Previous Context:
Microstrategy announced an additional $500 million investment in Bitcoin, causing its stock price to plummet nearly 8%. Has Bitcoin’s rallying power lost its effectiveness?)
(Background:
Microstrategy’s Bitcoin purchase led to a 750% surge in stock price. Will investing in BTC become a global corporate trend?)
Table of Contents
Microstrategy Adds Another 11,931 BTC
Microstrategy Has Been Buying BTC Since August 2020
Can You Profit by Following Microstrategy’s Bitcoin Purchases?
As the dominant holder of Bitcoin among US listed companies, Microstrategy (Microstrategy) announced on June 13th that it plans to issue $500 million worth of convertible bonds due in 2032 via private placement. The funds raised will be used to purchase Bitcoin and for corporate operations.
Microstrategy Adds Another 11,931 BTC
Just last night (20th), according to the latest disclosure in a document, Microstrategy completed the convertible bond issuance on June 18th, raising $786 million in new capital. They have already used this capital to purchase an additional 11,931 Bitcoins at an average price of $65,883.
This further elevates Microstrategy’s current Bitcoin holdings to approximately 226,400 Bitcoins, valued at about $14.7 billion. According to the latest statistics, Microstrategy’s total investment cost amounts to approximately $8.33 billion, with current unrealized gains exceeding $6.4 billion.
Microstrategy Has Been Buying BTC Since August 2020
Since August 2020, Microstrategy founder Michael Saylor announced continuous investments in Bitcoin, marking the beginning of a fervent accumulation of assets. Not only has their Bitcoin holdings gradually accumulated substantial profits, but their stock price has also surged from $146 in August 2020 to $1,474 presently, an increase of over 900%.
Microstrategy’s Bitcoin Holdings and Stock Price Changes
Can You Profit by Following Microstrategy’s Bitcoin Purchases?
According to data compiled by bitcointreasuries, since August 2020, Microstrategy has engaged in dozens of purchases.
Long-term View (4 years)
If you had followed Microstrategy’s footsteps from the beginning, at the current Bitcoin market price of $65,000, the purchases made on June 20th, March 31st, and March 10th of this year were expensive, with the lowest purchase price being on September 14, 2020, at an average price of $10,329.
In other words, if you had followed Microstrategy’s strategy of accumulating Bitcoin and held onto it until now, you would have made substantial profits.
Microstrategy’s Historical Bitcoin Accumulation Timeline
Short-term View (Looking at the past year)
Looking at data from the past year, Microstrategy made a total of 13 purchases from June 28th of last year until now. Except for the three times they bought at higher prices in March this year (three additions), other entry times also yielded significant profits, indicating a relatively high success rate for investments.
However, given that Microstrategy began positioning itself early, the average purchase cost over multiple additions is only about $36,000; and assuming you started buying from the bull market in 2021, you would have experienced significant losses over a long period of time.
Therefore, if you start following Microstrategy’s footsteps to buy Bitcoin now, it may be difficult to achieve substantial short-term profits. Investors should conduct their own research (DYOR).
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