According to U.Today, MicroStrategy, the business intelligence firm chaired by Michael Saylor, has continued to expand its Bitcoin holdings. The firm, known as one of the earliest corporate adopters of the digital asset, has become a focal point in the cryptocurrency community. As per data from on-chain analytics website lookonchain, MicroStrategy added another 122 BTC worth $7.8 million at $63,934 in April. This purchase has increased the firm's Bitcoin holdings by 25,250 since the end of the fourth quarter.
The latest acquisition brings MicroStrategy's total Bitcoin holdings to 214,400 BTC, valued at $13.22 billion. The average purchase price was $35,180. Based on current Bitcoin prices, the profit is projected to be around $5.68 billion, as per lookonchain's estimates. However, due to existing accounting rules, MicroStrategy cannot report any increases in its Bitcoin holdings, including the nearly 67% increase in the most recent quarter. This could change with a new accounting rule that requires digital assets to be valued at market prices. Companies have until 2025 to adopt this revision.
In 2020, MicroStrategy became the first public company to buy Bitcoin as a capital allocation strategy, citing the need to hedge against inflation. Despite Saylor's popularity among digital asset advocates, no other U.S. public company, except Tesla and a few crypto-related firms, has chosen to include Bitcoin in its financial statement. At the time of writing, BTC had fallen 1.37% in the previous 24 hours to $61,536. Crypto analyst Ali suggested that a sustained close below the BTC short-term holder realized price, currently at $59,800, could indicate a potential BTC market peak. If the market peak is confirmed, BTC could drop to $51,530, or even $42,700. However, if Bitcoin can surpass $66,250 and maintain this support level, the bearish outlook would be invalidated. Bitcoin's momentum could increase if it exceeds $66,250, potentially pushing it towards $69,150. If this resistance level is broken, BTC could reach a new all-time high of $92,190.
