Software company Microstrategy purchased an additional $37 million worth of Bitcoin, increasing its unrealized profit to $37 million.
Microstrategy now holds so much unrealized Bitcoin profit
Michael Saylor, the founder and chairman of Microstrategy, revealed in an X post that the company purchased an additional 850 BTC for $37.2 million in January, which was recently approved.
In a post on
First, here's a chart showing how Microstrategy's overall offering has grown over the past few years:
The evolution of the total amount of cryptocurrency held by the company | Source: @JA_Maartun on X
The chart shows that the company has made several Bitcoin purchases over the past year and has significantly increased its holdings. After the recent purchase, there are 190,000 BTC in the company's wallets.
This is a staggering amount as the asset's total circulating supply is currently around 19.6 million BTC, meaning Microstrategy alone holds almost 1% of the BTC supply.
To illustrate, all Bitcoin spot exchange traded funds (ETFs), including the Grayscale Bitcoin Trust (GBTC), collectively hold about 3.3% of the coins in circulation.
Next, Maartunn shared a table with the cost of each purchase.
The prices at which the company made each of these purchases | Source: @JA_Maartun on X
Adding all these costs together brings the total price of Microstrategy's Bitcoin stack to around $5.932 billion. However, the chart below shows that the company's actual BTC value differs from this amount.
It looks as if the value of company holdings has increased significantly in recent months | Source: @JA_Maartun on X
As the chart shows, the value of Microstrategy's stack at the current price of the cryptocurrency is significantly higher than the amount the company used to acquire these coins. In particular, the value of the company's investments is currently around 8.1 billion US dollars.
Finally, the analyst provided a chart showing the evolution of the company's unrealized gains and losses over the years.
The value of the indicator currently seems to be very positive | Source: @JA_Maartun on X
Microstrategy's Bitcoin holdings had been in the red during the 2022 bear market and most of 2023, but with the start of the rally last October, the company's fortunes finally changed and it returned to the green.
The company's BTC stack holds significant unrealized profits of nearly $2.2 billion. It appears that Saylor's strategy has paid off, at least for now.
BTC price
At the time of writing, Bitcoin is trading around the $43,000 mark, up 1% over the past week.
The price of the coin seems to be moving sideways in the last few days | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, charts from TradingView.com, CryptoQuant.com
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