Here’s Micro Strategy’s Unrealized Profits As BTC Rises Over $47K

Microstrategy announced another acquisition completed in January, taking its total holdings to 190,000.

That wealth has been accumulated over the past three and a half years, and the NASDAQ-listed business intelligence software giant is sitting on high (unrealized) profits after struggling for the past year or so.

Microstrategy BTC Holdings in Green

The behemoth, then led by Michael Saylor, made headlines in August 2020 with its first massive Bitcoin purchase and subsequent announcement that it was buying more and more cryptocurrency as its reserve asset.

Since then, the company has made countless purchases that are unrelated to market conditions and whether BTC is trading above $50,000 or below $20,000. Although Saylor eventually stepped down as CEO, he took on a more bitcoin-centric role, and the firm continued to accumulate.

In the year The market crash in late 2022 and early 2023 hurt MicroStrategy Finance as it had to endure a series of quarterly losses and multi-million BTC impairment charges. However, that hasn't stopped Saylor and the company he founded three decades ago from their strategy.

Likewise, MicroStrategy's Bitcoin stash continues to grow and just recently reached the staggering 190,000 BTC number. Given the company's dollar-cost-averaging (DCA) strategy for purchasing this high volume, the average entry price is $31,464. This means MicroStrategy is just shy of $6 billion to collect its entire Bitcoin portfolio.

With BTC currently hovering above $47,300, the company's stock is now worth 50% more — or more than $9 billion. However, Saylor has repeatedly stated in the past that the firm has no intention of selling its BTC holdings, which means that this unrealized profit may remain just that – unaccounted for.

Activities of MSTR

It is important to examine the stock price of MicroStrategy, especially since it started buying BTC. Despite criticism from some, MSTR stalled at around $125 in early August 2020 but surpassed $1,000 in the following six months as BTC continued to grow.

Shares of MicroStrategy also pulled back sharply during the crypto winter, but closed Friday's trading session at $646. This means that despite returning from the ATH in 2021, MSTR is up over 400% after implementing the Bitcoin buying strategy.