In a compelling development within the world of cryptocurrency investment, MicroStrategy, an industry leader in bitcoin investment, is experiencing a financial upturn, with over 3.74 billion South African Rand (ZAR) in profits as the price of bitcoin remains steady above the $31,000 mark. This achievement has come to fruition despite the persistent turbulence in the cryptocurrency market following the devastating LUNA collapse and the FTX bankruptcy, both of which had far-reaching consequences on the crypto sector.
MicroStrategy’s leap into profitability is indicative of the company’s unwavering commitment to investing in Bitcoin. The company, which has been an ardent proponent of Bitcoin investment over the past two years, has continuously increased its Bitcoin holdings, even in the face of seemingly insurmountable financial challenges. Despite periods where their investments were underwater due to the crypto winter, MicroStrategy’s resolute stance is now reaping significant rewards.
According to data from the Bitcoin Treasuries website, MicroStrategy currently holds an impressive 152,333 BTC, an investment which cost the company a total of around 84.60 billion ZAR. As the market value of their Bitcoin investment now stands at approximately 88.48 billion ZAR, it’s clear that MicroStrategy’s strategic investment strategy has put them over 3.74 billion ZAR in profit. This windfall comes at a time when Bitcoin has solidly breached the $31,000 level, surpassing the company’s average cost price for their Bitcoin acquisitions.
MicroStrategy, which commenced Bitcoin buying in 2020, undertook one of its most substantial purchases in June, acquiring 12,333 BTC at an average price of approximately 526,331 ZAR. This massive investment, totalling around 6.49 billion ZAR, effectively brought down the average price of the company’s Bitcoin holdings to approximately 555,483 ZAR, a move which has now placed the company in a financially profitable position due to Bitcoin’s recent price rally.
However, it is worth noting that while MicroStrategy may be experiencing this significant financial windfall, it’s far from the only company to have recognised and invested in Bitcoin’s potential for growth. Despite the presence of these other investors, none has made as deep a commitment as MicroStrategy, leading it to hold over twice the total Bitcoin held by the top ten companies invested in the cryptocurrency.
The runner-up in terms of Bitcoin holdings is Marathon Digital Holdings, a Bitcoin mining company, which has amassed 12,232 BTC through its mining operations over the years. In a close third place, Elon Musk’s Tesla, currently holds 9,720 BTC, following the sale of approximately 75% of its total Bitcoin holdings.
As the world of cryptocurrency continues to evolve, this story should encourage South African investors to study the market and perhaps follow in the footsteps of industry leaders like MicroStrategy. While the crypto market carries inherent risks, as demonstrated by the LUNA collapse and the FTX bankruptcy, the strategic accumulation and holding of Bitcoin can indeed result in significant profits, as the MicroStrategy success story has shown.
*All currencies in the article have been converted to the South African Rand