MicroStrategy Rockets Above $500 on Black Friday with BTC Boom

On Black Friday, MicroStrategy shares, an enterprise business firm bullish on Bitcoin, closed comfortably above $500.

This is the highest price the company has ascended to since December 2021, and the New York-based tech-heavy exchange estimates that the stock has amassed a market capitalization of $7.33 billion.

MicroStrategy’s prolonged strategy of holding the leading cryptocurrency has been highly profitable. A month after beginning the year with a quarterly loss, the company’s stock price had doubled.

The organization is among the most sizable institutional Bitcoin holders; in August 2020, its chairman and founder, Michael Saylor, began purchasing Bitcoin as an inflation hedge.

“As a result, we are all relatively optimistic about the upcoming year,” Saylor explained to CNBC. “There will be a contraction in supply and an increase in demand; this is virtually unprecedented in the annals of Wall Street.”

The news continued to improve after that. MicroStrategy’s Bitcoin holdings exhibited a positive balance by April.

The cost of Bitcoin surpassed $30,000. Following the acquisition of 1,045 additional Bitcoin, bringing the total holdings to 14,000, the average purchase price per coin of the digital asset, which was worth over $4 billion, decreased to $29,803.

MicroStrategy regained profitability in its second-quarter earnings report despite a $24 million Bitcoin impairment charge.

The largest publicly traded company with Bitcoin on its balance sheet continued to acquire BTC, accumulating 152,800 coins worth approximately $4.4 billion.

At this juncture, despite Bitcoin’s recovery, the performance of stocks belonging to companies exposed to the cryptocurrency surpassed that of Bitcoin itself—an asset that had already risen 87% this year.

The company disclosed a net loss of $143.4 million in its most recent quarterly report, released in early November.

This represents a significantly more pronounced decline in value compared to the $27 million loss reported for the corresponding period in the previous year.

Despite this, MicroStrategy continued to acquire Bitcoin: for $167 million, it obtained an additional 6,067 Bitcoin.

Currently, the organization possesses around 0.75% of the entire circulating supply of Bitcoin.