Here is MicroStrategy's unrealized profit on its Bitcoin investment as BTC rose above $47,000

MicroStrategy announced another purchase, completed in January, increasing its total holdings to a staggering 190,000.

That fortune has been amassed over the past three and a half years, and the NASDAQ-listed business intelligence software giant is now posting a huge (unrealized) profit after struggling over the last year or so.

MicroStrategy's BTC holdings in green

The then-led Michael Saylor giant made a splash in August 2020 with its first major Bitcoin purchase and subsequently announced that it plans to continue buying more and more cryptocurrencies as reserves.

Since then, the company has made countless purchases regardless of the market condition and whether BTC is trading above $50,000 or below $20,000. Although Saylor eventually stepped down from his position as CEO, he took on a more Bitcoin-focused role and the company continued to grow.

The market crash in late 2022 and early 2023 hurt MicroStrategy's finances as the company also suffered consecutive quarterly losses and impairments amounting to millions of BTC. But that didn't stop Saylor and the company he founded over three decades ago from their strategy.

As a result, MicroStrategy's Bitcoin supply continued to rise, recently reaching a staggering figure of 190,000 BTC. Given the company's dollar-cost averaging (DCA) strategy in purchasing this huge quantity, the average entry price is $31,464. This means MicroStrategy spent just under $6 billion building its entire Bitcoin portfolio.

With the price of BTC currently above $47,300, the company’s holdings are now worth 50% more – or just over $9 billion. Still, Saylor has reiterated multiple times in the past that the company has no intention of selling its BTC holdings, meaning this unrealized gain may continue to be just that – unrealized.

MicroStrategy's Bitcoin holdings. Source: Saylortracker

MSTR's movements

It is important to examine MicroStrategy's stock price over the years, especially since it began purchasing BTC. Despite some criticism, MSTR was around $125 in early August 2020, but rose to over $1,000 over the next six months when BTC was also on the rise.

MicroStrategy shares also fell sharply during the crypto winter, but closed Friday's trading session at $646. This means that MSTR has increased by more than 400% since implementing the Bitcoin buying strategy despite a decline from the ATH in 2021.

MSTR price movements over 5 years. Source: TradingView

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