MicroStrategy Achieves 100% ROI In Bitcoin Holdings
MicroStrategy’s Bitcoin holdings have surged in value to over $20 billion as the coin’s price reached an all-time high of over $81,000. Accordingly, MicroStrategy’s 252,200 BTC holdings have now yielded a return on investment (ROI) of more than 104%.
MicroStrategy’s approach resulted in the firm acquiring BTC at an average cost of $39,292 per coin. This accumulation strategy has solidified MicroStrategy’s position as the largest corporate holder of this cryptocurrency, ahead of other prominent firms such as Marathon Digital and Riot Platforms.
Marathon holds approximately $2.1 billion worth of this crypto asset, while Riot Platforms’ BTC assets are valued at around $840 million. Despite its significant BTC holdings, MicroStrategy is pursuing a “21/21” plan, intending to raise $42 billion over the next three years.
This plan includes $21 billion in equity and $21 billion in fixed-income securities to increase their Bitcoin reserves.
Effect on Other Holders
The recent rally has also positively impacted other Bitcoin whale holders. For instance, Bhutan, known for its embrace of cryptocurrency, has seen the worth of its holdings surpass $1 billion.
This worth represents 32% of Bhutan’s total GDP, valued at $3.15 billion by the International Monetary Fund (IMF) as of October 2024. Bhutan’s approach to BTC acquisition includes constructing a large-scale mining operation and using BTC as a reserve asset to bolster its economy.
El Salvador’s BTC Holding Surpasses $480M
El Salvador is also experiencing gains from its BTC strategy. The Central American nation currently holds 5,930 BTC, which is valued at more than $482 million.
This reflects an 80% appreciation in their investment, with unrealized profits estimated at nearly $214 million. Despite facing criticism for holding BTC during the 2022 market downturn, President Nayib Bukele’s administration has continued its policy of buying 1 BTC per day.
Moreover, the nation benefits from Bitcoin-related revenue streams such as its passport program and a unique volcanic-powered mining initiative. This diversified approach has helped El Salvador mitigate risks associated with market fluctuations.
Bitcoin Hits $1.6 Trillion Market Cap
Meanwhile, Bitcoin’s market capitalization has reached a new milestone, exceeding $1.6 trillion following the cryptocurrency’s price surge past $81,000. This achievement solidifies the crypto’s dominance in the digital asset space.
The latest price rally ensures that Bitcoin holders within the last 15 years are now in profit. On-chain data shows that investments in Bitcoin, dating back 8,900 days, have appreciated relative to the current market price.
This consistent growth over time reinforces Bitcoin’s status as a haven investment. The coin’s circulating supply currently stands at 19.8 million BTC.
If the full supply of 21 million BTC were in circulation, its fully diluted market capitalization (FDV) would be approximately $1.7 trillion.
Why Bitcoin’s Price is Soaring
Several factors contribute to Bitcoin’s sustained price surge. Rising interest from institutional investors and a positive crypto stance from US President-elect Donald Trump has strengthened market confidence in the asset.
Additionally, a wave of optimism among traders and investors supports continued upward momentum. Bitcoin previously crossed the $1 trillion market cap in February 2024, when its price surpassed $51,000.
However, it dropped below this value around the halving event. The recent surge above $80,000 has reignited expectations for further gains, with analysts suggesting that the current rally is far from over.
Renowned crypto analyst Tuur Demeester advised investors to hold their positions and resist selling their holdings regardless of market fluctuations. James Check, Glassnode’s lead analyst, pointed out that Bitcoin’s price remains positioned above its 200-day Moving Average (DMA), indicating that the asset still has room for upward movement before encountering significant resistance.
Can Bitcoin Price Hit $100,000?
In addition, Fadi Aboualfa, Copper.co’s Head of Research suggests that the coin’s positive momentum could persist into the new year.
The firm’s latest report indicates that ETF accumulation patterns and projected price ranges could cause Bitcoin’s price to reach $100,000 by the time the 47th US President takes office on January 20. It also predicted that its ETFs would hold about 1.1 million BTC by that time.
