Here’s how much MicroStrategy is down on its Bitcoin investment

Three years ago, Michael Saylor, the visionary co-founder of MicroStrategy, unveiled a ‘Bitcoin Initiative’ – a corporate strategy aimed at acquiring and steadfastly holding Bitcoin (BTC).

Since then, MicroStrategy has been steadily accumulating BTC regardless of market conditions, becoming the largest publicly listed corporate holder of the maiden cryptocurrency.

Last month, Saylor’s company continued its aggressive approach, buying an additional 5,445 BTC for around $150 million, a regulatory filing published on September 25 revealed. The average purchase price for this investment was around $27,053 per BTC, the company said in the filing. 

The move brought MicroStrategy’s total BTC holdings to around 158,245 coins, with an aggregate buy price of $4.68 billion and an average purchase price per Bitcoin of $29,582. 

MicroStrategy’s Bitcoin investment unprofitable

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With its latest purchase, MicroStrategy significantly increased its exposure to Bitcoin, and now owns more than 0.75% of the cryptocurrency’s total supply of 21 million coins.

However, the company’s total BTC investment is not profitable for the time being.

Notably, the investment is posting over $500 million in unrealized losses as BTC continues to trade around $26,200 – notably lower than MicroStrategy’s average buy price per coin. 

Bitcoin price analysis

At the time of writing on September 26, Bitcoin was changing hands at $26,268, up 0.6% in the past 24 hours. Over the past week, however, the crypto asset lost around 2.7% of its value.

BTC 1-week price chart. Source: Finbold

Year-to-date, BTC remains nearly 60% higher, outperforming the majority of the top 10 cryptocurrencies by market cap.

Bitcoin, along with digital assets, has been struggling to stage a significant price breakout over the past several weeks as investors remain cautious amid a lack of positive sentiment. 

The uncertainty around the Federal Reserve’s future monetary policy decisions and the SEC’s verdict on various spot Bitcoin exchange-traded fund (ETF) applications has forced investors to stay defensive.

Last week, the Fed left interest rates unchanged for this month; however, Chair Jerome Powell suggested the bank would consider additional hikes in 2023 if necessary. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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