U.Today - MicroStrategy, the business intelligence firm led by chairman Michael Saylor, continues to make waves in the cryptocurrency space with its significant holdings of Bitcoin.
As one of the earliest corporate adopters of the digital asset, MicroStrategy's Bitcoin stash has become a focal point for the crypto community.
According to on-chain analytics website lookonchain, MicroStrategy purchased another 122 BTC worth $7.8 million at $63,934 in April. The firm's Bitcoin cache has grown by 25,250 since the conclusion of the fourth quarter.
This brings MicroStrategy's total Bitcoin holdings to 214,400 BTC, worth $13.22 billion, with an average purchase price of $35,180. At current Bitcoin pricing, the profit is anticipated to be $5.68 billion, according to lookonchain estimates.
However, under existing accounting rules, MicroStrategy is unable to report any increases in its Bitcoin holdings, including the nearly 67% increase in the most recent quarter. However, this could change due to a recent accounting rule that requires digital assets to be valued at market pricing.
Companies have until 2025 to adopt the revision. MicroStrategy did not embrace the modification for the first quarter, instead reporting a $191.6 million digital asset impairment loss.
In 2020, MicroStrategy became the first public firm to purchase Bitcoin as a capital allocation strategy, with Saylor noting the necessity to hedge against inflation. While Saylor has earned the adoration of digital-asset advocates, no other U.S. public corporation, except Tesla (NASDAQ:TSLA) and a few crypto-related firms, has elected to include Bitcoin on its financial sheet.
Bitcoin price action
If the market peak is confirmed, BTC might fall to $51,530, or perhaps $42,700. However, if Bitcoin can break over $66,250 and reclaim this level of support, the negative view would be invalidated. Bitcoin's strength might increase when it rises beyond $66,250, allowing it to push toward $69,150. If this resistance level is broken, BTC might rise to a new all-time high of $92,190.