Can MicroStrategy’s Bitcoin Investment Turn Profitable Again? Average Purchase Price at $29,817
MicroStrategy’s Bitcoin investment is set to turn profitable once again as Bitcoin’s price has surged in 2021. The software company has invested over $4 billion in Bitcoin purchases, with an average purchase price per Bitcoin of $29,817.
The investment has been a mixed bag for MicroStrategy, with record book profits of $3.1 billion in good market conditions and impairment losses exceeding $2.1 billion in other quarters.
Bitcoin’s price experienced a significant drop of 64% in 2020, but it has since made a remarkable recovery, increasing by about 73% in the first quarter of 2021. The cryptocurrency hit a high of $29,171 during intraday trading on the 29th, a figure that has made MicroStrategy’s investment look promising.
Despite the regulatory risks associated with investing in the cryptocurrency market, MicroStrategy continues to invest in Bitcoin. On the 27th of March, the company announced that it had purchased an additional $150 million in Bitcoin and paid off a $205 million loan secured by Bitcoin.
MicroStrategy’s CEO, Michael Saylor, has been a vocal advocate of Bitcoin, describing it as a better store of value than gold. He has also argued that Bitcoin is an effective hedge against inflation, which has become a growing concern for investors due to the unprecedented amount of government stimulus being injected into the economy.
The success of MicroStrategy’s Bitcoin investment has made headlines in recent months, with other companies and institutions following suit. Tesla, for instance, invested $1.5 billion in Bitcoin earlier this year, while Square, a payments company founded by Jack Dorsey, invested $50 million.
As the price of Bitcoin continues to fluctuate, it remains to be seen whether MicroStrategy’s investment will ultimately prove to be profitable. However, for now, it appears that the company’s decision to invest heavily in cryptocurrency is paying off.
Read more:
- MicroStrategy Acquires Additional 6,455 Bitcoins For $150 Million
- Bitcoin Predicted To Reach $500,000 By 2025, Says ‘Rich Dad, Poor Dad’ Author Robert Kiyosaki
- George Soros’ Fund Invests Millions In Bitcoin-Related Assets, Including Marathon And MicroStrategy