Michael Saylor, the founder and chairman of Strategy(MicroStrategy), is seeing massive gains from his company’s bold investment in Bitcoin. As of now, Strategy holds 592,345 Bitcoins, making it the largest corporate holder of BTC in the world.
The company bought its Bitcoin at an average price of around $70,702 per coin. At the time of writing, Bitcoin is trading at around $106,824. That’s why the total value of Strategy’s Bitcoin portfolio has jumped to $63.28 billion. This gives them an unrealized profit of $21.3 billion, a gain of about 51%.
Saylor’s long-term strategy of regularly buying Bitcoin, regardless of the price (known as dollar-cost averaging), is now showing strong results. He has often referred to Bitcoin as a long-term store of value and a better alternative to holding cash.
Meanwhile, Strategy’s stock ($MSTR) is trading at $393.24 with a market cap of approximately $107.51 billion. This reflects growing investor confidence in the company’s Bitcoin-focused strategy. The stock is trading at a 1.67x premium to its net asset value (NAV), further underlining the market’s bullish view.
Michael Saylor’s approach, once considered risky, is now being seen as visionary as Bitcoin continues to climb and bring in huge paper profits for the company.
However, not everyone is convinced. Two top Wall Street investors, Jim Chanos and Cliff Asness, are already criticizing Saylor’s Bitcoin strategy. They disagreed with Saylor’s claim that the company’s debt isn’t risky even if Bitcoin crashes. Chanos said the debt must still be repaid, and Asness added that paying with stock won’t work if Bitcoin crashes and the company’s value drops.
Also Read: 91% Chance of Saylor’s Strategy Joining S&P 500 in Q2: Analyst
