Despite losing $120M in a day, MicroStrategy is still up on its Bitcoin investment

2020-11-27 02:00

Bitcoin’s latest price slump wiped out over $100 million in value from MicroStrategy’s crypto portfolio. However, despite suffering devastating losses in the past 24 hours, the company is still up almost 50 percent the 38,250 BTC it bought this year, showing that there’s no place for weak hands in billion-dollar NASDAQ companies.

A billion-dollar company with a Bitcoin treasury

Despite being a billion-dollar NASDAQ-listed company, MicroStrategy wasn’t a household name for many in the crypto industry. However, all of that changed when the company announced that it had invested a total of $425 million in bitcoin this year, acquiring 38,250 BTC across several months.

The company shared its new investment plan with the SEC, saying that its treasury will consist of two types of assets, one of them being Bitcoin. The world’s largest digital currency is set to serve as the primary treasury reserve asset on an ongoing basis, the company said, adding that it might be used for future potential share repurchasing.

Given the fact that the company acquired the 38,250 BTC for an average purchase price of $11,111 per coin, Bitcoin’s massive rally to $19,400 this week meant that the company’s portfolio was, at one point, worth over $724 million. Recording a 75 percent increase, MicroStrategy’s Bitcoin investment was touted by many as extremely bullish for the market.

Even with $120M wiped out from its portfolio, MicroStrategy is still up 50% on BTC

However, Bitcoin’s massive slump has drastically affected its portfolio, with the company recording a loss of over $100 million in a single day.

Worth $742 million on Nov. 25, MicroStrategy’s Bitcoin investment slumped to just $621 million when Bitcoin’s price dropped to $16,260 at one point today.

 

Screengrab showing Bitcoin’s price on Bitstamp from Nov. 23 to Nov. 26. (Source: CryptoSlate Bitcoin)

With $120 million wiped out from its portfolio, the public began labeling MicroStrategy as one of the biggest losers of the day in terms of aggregate sum lost.

However, even with such a massive loss, the company’s investment in an asset as risky as Bitcoin turned out to be a smart decision overall. Given the fact that the company acquired most of its Bitcoin holdings at an average price of $11,111 per coin, Bitcoin’s slump to $16,260 has put the company’s portfolio gains at only 46 percent.

Screengrab showing Bitcoin’s price on Bitstamp from September to November.

The post Despite losing $120M in a day, MicroStrategy is still up on its Bitcoin investment appeared first on CryptoSlate.

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microstrategy bitcoin despite investment 120m still day

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MicroStrategy to raise $2B with ATM offering as shareholders accrue more Bitcoin per share

Quick Take Q2 2024 Highlights On Aug. 1, MicroStrategy announced its Q2 results, highlighting a significant milestone as its total Bitcoin holdings reached 226,500 BTC. The company reported several key financial moves in Q2 2024, according to their quarterly presentation, including raising $800 million through 2032 convertible notes, calling $650 million of 2025 convertible notes, […] The post MicroStrategy to raise $2B with ATM offering as shareholders accrue more Bitcoin per share appeared first on CryptoSlate.

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Brace For Impact: MicroStrategy Is Planning Another $500 Million Bitcoin Purchase

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MicroStrategy’s steadfast belief in Bitcoin has proven to be a wise investment strategy, as the company’s significant BTC holdings have begun to yield substantial returns. Despite facing challenges such as the bear market and industry crises, MicroStrategy remained committed to accumulating Bitcoin, and their patience seems to be paying off. $200M In Profit For MicroStrategy […]

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1 in every 138 Bitcoins are now owned by MicroStrategy, but it doesn’t make much sense

Key Takeaways MicroStrategy has purchased another thousand Bitcoin, taking their holdings to 140,000 at an average price of $28K The total investment is now $4.2 billion, with the company’s fate tied to the Bitcoin price CEO Saylor remains ultra-bullish, but has no regard for risk management For investors, someone may as well just purchase Bitcoin […] The post 1 in every 138 Bitcoins are now owned by MicroStrategy, but it doesn’t make much sense appeared first on CoinJournal.

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