The company’s strategy of capitalizing on the cryptocurrency market’s downturns is evident in its consistent acquisitions. The June purchase of 12,333 BTC, valued at $347 million, combined with the recent addition, places MicroStrategy’s total Bitcoin investments at approximately $4.68 billion. However, due to price fluctuations in the Bitcoin market, the current value of these holdings stands at around $4.12 billion, indicating a 12% decline from the original purchase price.
MicroStrategy’s Q2 earnings report for 2023 revealed a significant decrease in impairment losses on its digital assets compared to the same period in 2022. The company reported $24 million in losses this year compared to last year’s staggering $917 million.
Despite the company’s strong focus on Bitcoin, its value remains closely tied to stock market movements. In Q2 of 2023, MicroStrategy’s share price reached a peak of $462.30 before falling to $318—a 30% decline. This drop surpassed the 17% decrease in Bitcoin’s price during the same period.
For MicroStrategy to break even on its Bitcoin investments or turn a profit, the cryptocurrency’s price would have to increase by 13%, reaching $29,582 from its current trading price of $26,116.
While market conditions have posed challenges for MicroStrategy, its continued investment in Bitcoin could potentially influence a bullish trend for the cryptocurrency in the coming days. However, as is always the case with investments tied to volatile markets, the future remains uncertain.
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Source: Cryptocurrency - investing.com
