🔥 Key Takeaways
- MicroStrategy’s $3.4 billion cost basis in Bitcoin is now near $29,600 per coin, however $91,000 is its cost-basis when including all seven major purchases.
- This level has become crucial in determining the company’s near-term outlook.
- If Bitcoin falls below this level, MicroStrategy’s investment could be at risk.
MicroStrategy’s Near-Term Outlook Depends on This Bitcoin Price Level
Business intelligence firm MicroStrategy has been one of the most prominent institutional investors in Bitcoin. The company has made seven major purchases of the cryptocurrency, with its total investment now standing at $3.4 billion. However, with the recent decline in Bitcoin’s price, MicroStrategy’s cost basis has become a crucial level that could determine the company’s near-term outlook.
A $91,000 Cost Basis
MicroStrategy’s $3.4 billion investment in Bitcoin is now near $29,600 per coin. However, when including all seven major purchases, the company’s cost basis is near $91,000. This level has become a significant point of interest for investors and analysts, as it could determine the company’s profitability and near-term outlook.
Risk of Investment
If Bitcoin falls below $91,000, MicroStrategy’s investment could be at risk. The company’s profitability would decline, and its ability to service its debt could be impacted. This could lead to a decline in the company’s stock price and a potential sell-off of its Bitcoin holdings.
Conclusion
MicroStrategy’s near-term outlook depends on the $91,000 Bitcoin price level. If the cryptocurrency falls below this level, the company’s investment could be at risk. However, if Bitcoin can hold above this level, MicroStrategy’s profitability and near-term outlook could be secured. Investors and analysts will be closely watching this level in the coming weeks and months.
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