MicroStrategy nets $840 Million from Bitcoin gains as El Salvador’s investment turns profitable

The ongoing surge in Bitcoin’s value is bringing substantial unrealized profits to MicroStrategy, a leading American software technology firm.

As the world’s largest corporate holder of Bitcoin, MicroStrategy’s investment strategy has been immensely rewarding, especially in 2024. The company’s Bitcoin treasury, last updated in December 2023, comprises a staggering 189,150 BTC. This portfolio, valued at about $8.832 billion as of January 9, 2024, represents an increase of $840 million since the start of the year.

MicroStrategy’s success story is highlighted by the events of January 8, when a significant spike in Bitcoin’s value – a $3,000 increase in a single day – resulted in a gain of approximately $600 million for the firm.

This remarkable achievement underscores the company’s strategic foresight in cryptocurrency investment, which began in August 2020 when Bitcoin was priced just over $10,000.

While the company’s Bitcoin investments are flourishing, MicroStrategy’s stock tells a different story. Despite bullish trends in the Bitcoin market, MicroStrategy’s stock (MSTR) has seen a decline of over 15% since the beginning of the year.

This paradoxical situation is further compounded by CEO Michael Saylor’s personal investment strategies, which have been focused on increasing his Bitcoin holdings, evident from his recent sale of $216 million in company options.

El Salvador’s Bitcoin journey

In another part of the world, El Salvador’s foray into Bitcoin investments is finally paying off. After two years of fluctuating fortunes, the country is now sitting on $12.6 million in unrealized profits.

El Salvador’s Bitcoin journey began in September 2021, with the nation accumulating a total of 2,798 BTC, valued at $131.3 million. This strategic move, coupled with the Bitcoin market’s recent 75% surge since October, has positioned El Salvador favorably in the cryptocurrency landscape.