MicroStrategy Now Almost Even On Bitcoin Investment As Crypto Asset Rallies Amid US Banking Crisis

Business intelligence firm MicroStrategy, considered one of the largest Bitcoin holders in the world, could even its BTC investment as the world's largest crypto asset by market capitalization continues to rally amid the ongoing banking crisis in the United States.

MicroStrategy, particularly its former CEO Michael Saylor, known as a Bitcoin maximalist in the crypto space, was one of the heavily criticized executives over the past years because of his bullish stance toward Bitcoin.

After he stepped down from his post as the CEO and served as the executive chairman of the company he co-founded, Saylor was criticized and accused of losing his post due to his aggressive investment in Bitcoin.

But it seemed that Saylor's bullish stance in Bitcoin is now slowly paying off since the maiden crypto is now soaring in value as depositors and investors started to think about the logic behind the creation of the crypto asset with the current chaos in the U.S. banking industry.

Several industry watchers believe MicroStrategy's Bitcoin investment is nearing its breakeven level.

"Some investors may mark the moment when MicroStrategy's 132,500 BTC is at a breakeven level; I don't think Saylor ever thought that was not a high probability," Amplify Transformational Data Sharing ETF co-portfolio manager Dan Weiskopf told Blockworks.

"In fact, I am confident for him it is a short-term mark and only the beginning for what he expects bitcoin will accomplish," he added.

"MicroStrategy has survived a crypto ice age and now has an opportunity to take advantage of growing interest in DeFi and all the other crypto protocols with better growth potential," said Edward Moya, a senior market analyst at the foreign exchange company OANDA who criticized MicroStrategy last year.

"With no true bitcoin ETF coming, MicroStrategy is still positioned to attract new investors," he added.

MicroStrategy CFO Andrew Kand revealed last month that the business intelligence firm increased its total Bitcoin holdings to around 132,500 in the fourth quarter of last year, which was around $2.194 billion in market value, with the original cost basis for the crypto asset valued at nearly $4 billion at an average cost of approximately $30,137 per token.

Bitcoin surged to above the $28,000 price level Sunday and though the rise was brief, it continued to trade at the $28,000 price level the entire day.

However, Bitcoin has dropped from the $28,000 mark and over the past 24 hours witnessed a 2.45% loss. It was trading down at $27,584.26 with a 24-hour volume of $40,422,357,818 as of 4 a.m. ET on Tuesday, according to the latest data from CoinMarketCap.