MicroStrategy Accumulates Over $2 Billion Profit From Bitcoin Holdings Amid Crypto Surge

MicroStrategy, the American software and business intelligence company considered the largest corporate holder of Bitcoin, currently sits on over $2 billion in profit as BTC continues its surge.

The substantial Bitcoin investment by MicroStrategy has yielded significant returns, which began growing in August 2020 under the leadership of its current executive chairman, Michael Saylor.

Saylor and MicroStrategy faced heavy criticism in the past due to this investment. Rumors circulated that his transition from CEO to executive chairman was a demotion linked to the decision to invest in Bitcoin, which, at the time, was causing millions in losses.

However, those issues are now in the past as Saylor garners admiration and praise, particularly from the cryptocurrency community, for his dedication not only to invest in Bitcoin but also to hold onto it during periods when MicroStrategy faced losses.

On Monday, Bitcoin, the world's largest crypto asset by market capitalization, surged past the $42,000 price level, triggering substantial gains in other crypto assets.

Bitcoin's ascent to a new year-to-date high bodes well for MicroStrategy. In recent months, the company has increased its BTC holdings to 174,530 BTC, spending $593.3 million to acquire an additional 16,130 BTC.

In a tweet last Thursday, Saylor revealed that following MicroStrategy's recent BTC purchase, the company now holds 174,530 BTC acquired for approximately $5.28 billion at an average price of $30,252 per BTC. With Bitcoin trading at $42,371.75 on Monday night, MicroStrategy had realized a $2,115,259,967 profit at that time.

Bitcoin traded at $42,371.75 on Monday night, which means, at the time, MicroStrategy made $2,115,259,967 in profit.

Bitcoin was trading in the green zone at $41,703.77 as of 5:50 a.m. ET on Tuesday, with a 24-hour trading volume up by 25.38% at $33,515,266,348.

Bitcoin's price action represented a 0.04% gain over the past 24 hours and a 12.8% gain in the past seven days.

Data from CoinMarketCap showed that Bitcoin's circulating supply stands at 19,561,637 BTC with its value falling by 0.09% at a $815,721,938,408 market cap.

However, it seemed that MicroStrategy is not yet done expanding its Bitcoin portfolio since according to its CEO, the company is committed to acquiring and holding Bitcoin.

"We further increased our total Bitcoin holdings to 158,400 Bitcoins, adding 6,067 Bitcoins since the end of the second quarter. Our commitment to acquire and hold Bitcoin remains strong, especially with the promising backdrop of potential increased institutional adoption. And 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 and establish a solid foundation to capitalize on AI in BI," MicroStrategy CFO Andrew Kang said while announcing the company's Q3 financial results last month.