The aggressive Bitcoin accumulation strategy of CEO Michael Saylor seems to be working, as MicroStrategy’s stock performance closely tracks changes in the price of Bitcoin. As investors become more interested in Bitcoin due to its price spikes, Coinbase (NASDAQ:COIN) Global, one of the other crypto-related stocks, is up 2.6%.
Bitfarms, a significant Bitcoin mining company, saw a premarket gain of 61%, and Hut 8 and Riot Platforms (NASDAQ:RIOT) also saw increases of 34%. Marathon Digital Holdings (NASDAQ:MARA) increased three points to join the rally. In the meantime, ETFs that track Bitcoin, such as iShares Bitcoin Trust and ProShares Bitcoin Strategy ETF, saw gains of 2.5%, indicating increased confidence in the Bitcoin industry.
According to data from “Saylor Bitcoin tracker,” MicroStrategy has seen a significant increase in the value of its Bitcoin holdings. With an average cost basis of about $39,464, the current price of $71,201 has resulted in significant unrealized profits, with a total estimated profit of over $8 billion.
MicroStrategy’s position was further reinforced by the recent acquisition of 87,420 Bitcoin on Sept. 20 at a price of $61,750 per Bitcoin. This acquisition added substantial value because the price of Bitcoin has since increased significantly. Bitcoin’s potential to hit new highs has boosted investor sentiment, as evidenced by the robust premarket performance of cryptocurrency stocks.
Bitcoin may support further gains in all crypto-related assets if it continues on its current upward trajectory. These gains are not assured, though, due to Bitcoin’s volatility and continuing optimism will probably rely on the cryptocurrency’s capacity to maintain above the crucial $70,000 mark.
The rally has confirmed Saylor’s long-term outlook on digital assets as MicroStrategy’s approach is strongly linked to the performance of Bitcoin. If Bitcoin continues to rise to new all-time highs, MicroStrategy and its cryptocurrency industry peers appear to be well-positioned to profit from its momentum.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
