Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Business intelligence firm MicroStrategy, a Fortune 500 company, has seen its Bitcoin (BTC) investment return to profitability as BTC surpassed the significant resistance level of approximately $29,000, reaching a new 10-month peak of $30,163.
MicroStrategy began its Bitcoin investments in the second quarter of 2020 when BTC was valued around $10,000. Since that time, the firm has executed a series of BTC acquisitions over two years. The company has amassed a total of 140,000 Bitcoin, purchased for nearly $4.17 billion at an average cost of $29,803 per BTC.
Co-founder Michael Saylor implemented the Bitcoin strategy as a hedge against the U.S. dollar. In addition to holding BTC personally and on the company’s balance sheet, Saylor has also persuaded several public companies, including Tesla, SpaceX, and others, to add BTC to their balance sheets.
The Bitcoin investment made by the Fortune 500 company appeared profitable during the bullish market of 2021. However, a prolonged crypto downturn in 2022, exacerbated by various crypto crises stemming from the collapse of major crypto firms, caused BTC prices to plummet by over 70%. The same Bitcoin investment that seemed promising in 2021 faced criticism from crypto skeptics as MicroStrategy’s Bitcoin holdings were down by 50% at the peak of the bear market in 2022.
Related Posts
Nonetheless, Saylor consistently asserted that MicroStrategy had unwavering confidence in Bitcoin’s fundamental value and would persist in investing in the leading cryptocurrency. In a discussion with Cointelegraph, Saylor remarked that Bitcoin investments should be evaluated based on a four-year price cycle rather than on a single bear or bull market.
Related: MicroStrategy adds another 1,045 Bitcoin to its growing crypto treasury
Following a challenging 2022, BTC has demonstrated resilience throughout 2023, with prices experiencing over a 55% rise in the first quarter of this year. Bitcoin has closed above the previous month’s high for three consecutive months, a trend regarded as a bullish market signal and a potential indication of an upcoming bull run.
Bitcoin price history. Source: Bitcoin Archives
This year, Bitcoin has outperformed the majority of traditional stocks and bonds, recovering from the losses incurred during the crypto crises linked to the FTX and Terra-Luna incidents.
Magazine: Crypto winter can take a toll on hodlers’ mental health
