Microstrategy’s Bitcoin investment has recorded $10 billion in profits, following the digital assets rise to $79,350. The figure signifies a new all-time high hit Bitcoin which has been enjoying the momentum in the market.
Microstrategy CEO Michael Saylor was overjoyed at the victory of Republican candidate Donald Trump in the United States elections, taking to Twitter to show his happiness. Days later, the company’s stock rose, seeing an increase of 10%.
Microstrategy recoups $10 billion from its Bitcoin investment
Microstrategy’s Bitcoin investment profit is tied to the recent surge experienced by the leading digital asset. Bitcoin briefly crossed above $77,000 on Friday, setting a new all-high record before settling under that price tag. However, the asset has gathered upward momentum, seeing a 16% rise in the last seven days to trade at $79,355.
Many analysts have tied the recent pump in Bitcoin’s price to the election victory of Trump. Microstrategy CEO also believes this theory, calling Donald Trump the ‘Bitcoin president’ in one of his congratulatory posts after the election.
Ultimately, Microstrategy has signaled its intention to continue accumulating the asset. The company had laid down plans to acquire more Bitcoin regardless of the election result and price surge.
The company announced on October 30 that it was trying to secure $42 billion in new funding to purchase Bitcoin over the next three years. The company named it the ’21/21 plan’, revealing plans to offer equities to raise the first $21 billion while using fixed-income securities between 2025-2027 for the other $21 billion.
Michael Saylor said the company wants to create leverage by using the convertible bond market. He noted that soon, it will focus on the fixed-income market, which will include issuing shares to make it look like a swap.
The company intends to purchase enough Bitcoin over three years to get 106-110 Bitcoins per share. The company has achieved its goal of 118 Bitcoins per share this year.
In June, Microstrategy increased its convertible offering to $700 million and priced it to offer an annual yield of 2.25% to boost its Bitcoin reserves.
Michael Saylor makes bold Bitcoin prediction
Michael Saylor said on his X handle that many countries will look at the likelihood of using Bitcoin as a reserve asset. However, he feels Bitcoin holding might move slowly due to countries like Canada and the US taking a conservative approach.
Some analysts have also hinted at future legal tussles to discuss Bitcoin’s reserve assessment. Similarly, European countries are now benefiting from the MiCA regulation. The framework was built to provide digital assets with legal status. Norway has taken the lead in adopting the framework, but it is still considering coming up with additional regulations for financial stability.
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