Lucy Jane 
Microstrategy Bitcoin bet turns green as price hits 10-month high
Microstrategy, a Fortune 500 company specializing in business intelligence, has once again profited from its Bitcoin holdings, as the cryptocurrency has surpassed a key resistance level of approximately $29,000 to reach a 10-month high of $30,163.
Microstrategy initiated Bitcoin investments in the second quarter of 2020, when the BTC price was approximately $10,000.
Since then, the business intelligence company has made a number of BTC purchases over the course of two years. The company has amassed a total of 140,000 bitcoins, purchased for approximately $4.17 billion at an average price of $29,803 per bitcoin.
Michael Saylor, co-founder of MicroStrategy, introduced the Bitcoin strategy as a hedging asset against U.S. currencies. Saylor persuaded a number of public companies, including Tesla, SpaceX, and a dozen others, to hold BTC on their balance sheets.
Throughout the bull market in 2021, the Fortune 500 company’s Bitcoin wager appeared profitable. In contrast, a prolonged crypto winter in 2022, fueled by multiple crypto contagions caused by the collapse of prominent crypto unicorns, caused the BTC price to plummet by over 70%. MicroStrategy’s Bitcoin investment had a 50% loss at the height of the bear market in 2022, attracting much criticism from crypto critics for a wager that appeared lucrative in 2021.
Saylor maintained, nevertheless, that they had complete faith in Bitcoin’s underlying fundamentals and would continue to invest in the leading cryptocurrency. Saylor stated that a Bitcoin investment should be evaluated based on a four-year price cycle, not a single bear or bull market.
After a catastrophic 2022, the BTC price has shown resilience throughout 2023, with a price increase of over 55% in the first quarter.
The Bitcoin price has closed above the previous month’s high for three consecutive months, which is regarded as a favorable market indicator and an indication that another bull run is on the horizon.
