Major company MicroStrategy continues its crypto investment spree with 28 Bitcoin purchases, hinting at a potential larger Bitcoin venture in the future.
MicroStrategy (MSTR) has been making headlines in the financial world, with its strategic investment in Bitcoin proving to be a lucrative move. The company's unrealized profit from its Bitcoin stash currently stands at an impressive $27.23 billion.
Each Bitcoin in MSTR's treasury was acquired at a cost basis of $72,350. Despite the stock's volatility, the value of MSTR's Bitcoin stash has more than doubled, now totalling 638,460 Bitcoin. This represents a paper gain of 59%. The total value of the Bitcoin stash is approximately $46.17 billion.
MSTR's commitment to Bitcoin has remained unwavering, even in the face of market fluctuations. The company's Bitcoin accumulation has continued, with the total transactions potentially reaching 10, pushing the 2025 tally close to 40 BTC buys for MSTR.
The Nasdaq Composite Index (COMP) has also seen significant growth. It has surged nearly 32% off the April FUD low and is up 14.66% YTD, reaching an all-time high of 22,141. The stock market's volatility can be attributed to macro economic swings.
The future height of MicroStrategy's Bitcoin holdings following a potential Federal Reserve 20 basis points rate cut in 2025 is uncertain, but such a monetary easing could potentially increase investor appetite for Bitcoin and digital assets. This could boost MicroStrategy's Bitcoin-related gains and stock value, as their previous optimistic forecasts for 2025 earnings incorporated digital asset profits.
The FOMC has hinted at its first 2025 rate cut, and equities are front-running the bullish setup, potentially triggering another Bitcoin stack ramp for MSTR in Q4. The market is pricing in a 96% chance of a 400-425 bps rate cut.
MSTR's stock has also shown signs of recovery. It has popped 60% from its Liberation Day bottom at $280. However, it is currently down roughly 120% from its $450 peak.
Despite the stock's volatility, traders seem cautious on equities, but MSTR remains all-in on Bitcoin. In fact, Michael Saylor's strategy (formerly MicrosStrategy) is planning its 28th Bitcoin buy of the year. The planned Bitcoin buy is 58% ahead of last year's pace.
In Q4, MSTR's monthly average Bitcoin buy has been 3. As the company continues to invest in Bitcoin, it will be interesting to see how its strategy unfolds in the coming months.
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