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FameEX Hot Topics | Microstrategy's Bitcoin Venture Thrives, Yielding $1.6 Billion in Profits

2023-12-04 16:47:11

Recent data has shown a remarkable growth in Microstrategy's bitcoin investments, with a more than 30% increase in value. The company, a leader in business intelligence, mobile software, and cloud services, has invested a total of $5.314 billion in bitcoin. Currently, the value of its bitcoin holdings has soared to $6.915 billion, resulting in a substantial profit of $1.601 billion.


Microstrategy now holds the title of the largest bitcoin owner, surpassing various public and private entities, with the exception of governments and certain exchange-traded products, including Grayscale’s GBTC. As of the latest figures, Microstrategy possesses 174,530 BTC, worth an impressive $6.915 billion at current exchange rates.


According to Blockchaincenter.net, Microstrategy's total bitcoin investment is $5.314 billion. However, CEO Michael Saylor has reported a slightly lower expenditure of $5.28 billion, averaging $30,252 per bitcoin. This analysis mainly uses Blockchaincenter.net's data. With bitcoin's recent surge to $40K per coin, the report reflects a valuation based on BTC at $39,650 per unit.


The company's strategic investment approach in bitcoin, averaging $30,252 per BTC, has led to a 30.12% return, turning the initial $5.314 billion investment into $6.915 billion. Comparatively, had Microstrategy invested in ethereum (ETH), the potential profit could have been significantly higher. Investing the same amount in ETH could have led to holdings of 4,264,829 ETH, valued at $9.245 billion, a 74% profit of $3.931 billion. Additionally, staking ETH could have added approximately $869.4 million more in profits.


This hypothetical scenario would have increased Microstrategy's total valuation with ETH, including USD gains and staking, to around $10.114 billion. However, Microstrategy, under Saylor's leadership, has remained committed to bitcoin, with Saylor asserting the unmatched value of bitcoin over other cryptocurrencies.


Microstrategy's stock, MSTR, has also seen a significant surge. Over the past year, MSTR shares have increased by 167%, with a 262% rise since the beginning of the year, and 22% in the last month. When considering market valuation, including ETFs, cryptocurrencies, and precious metals, Microstrategy ranks as the 1,768th largest globally. Meanwhile, bitcoin holds the 11th highest market valuation worldwide, slightly trailing behind Warren Buffet's Berkshire Hathaway.


Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

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