MicroStrategys Bitcoin Holdings Balloons Above $10 Billion, Heres How Much Profit It Has Made
MicroStrategy recently revealed that they had acquired an additional 3,000 BTC this month, bringing its Bitcoin holdings to 193,000 BTC. Interestingly, BTCs recent price surge caused these holdings to cross the $10 billion mark, with the software company currently sitting on a tremendous amount of unrealized profits.
MicroStrategys Unrealized Profit Reaches $5 Billion
As disclosed in the companys filing with the Securities and Exchange Commission (SEC), its BTC holdings have now been purchased for an average price of $31,544. That means that MicroStrategys Bitcoin investment is now at an unrealized profit of almost $5 billion, considering Bitcoin is trading just above $57,000.
MicroStrategys Bitcoin strategy, spearheaded by its co-founder Michael Saylor, began as far back as 2020 when the company started investing in the flagship crypto token. Saylor saw this as a way to hedge against inflation and diversify the companys cash reserves. Since then, Saylor and his company have continued to accumulate Bitcoin aggressively.
Saylors faith in Bitcoin was tested when the companys investment was at an unrealized loss during the height of the crypto winter when BTC traded below the $30,000 price level. Despite that, Saylor and MicroStrategy stayed true to their Bitcoin Strategy. Instead of selling, they saw it as an opportunity to accumulate more BTC.
Saylor also recently made it clear that he and his company have no intention of liquidating their BTC holdings anytime soon, stating that Bitcoin is the exit strategy. This sentiment undoubtedly provides a bullish narrative for the flagship crypto, especially considering what could happen to the market if the company offloads its Bitcoin.
MicroStrategy is currently the largest corporate holder of BTC and is leading the charge as institutional demand for BTC continues to increase. This demand has mainly come from the Spot Bitcoin ETFs, which together hold more BTC than MicroStrategy combined.
Spot Bitcoin ETFs Trading Volume Surpass $2 Billion Again
Bloomberg analyst Eric Balchunas revealed that the newly listed Bitcoin ETFs once again surpassed the $2 billion mark on February 27. This was the second consecutive day they achieved this, having recorded an all-time high of $2.4 billion in trading volume on February 26. Specifically, the worlds largest asset manager, BlackRock, seems to be having a run of its own.
Balchunas noted that BlackRock had broken its record again, with the iShares Bitcoin ETF (IBIT) recording a trading volume of $1.3 billion on February 27. The impressive demand for these funds is believed to be another reason why BTCs price has continued to rally.
At the time of writing, Bitcoin is trading at around $57,100, up in the last 24 hours, according to data from CoinMarketCap.
Read more: https://www.newsbtc.com/news/bitcoin/microstrategy-bitcoin-holdings/
Text source: NewsBTC
