MicroStrategy's BTC Holdings Give It Huge Unrealized Profit as Bitcoin Pumps
According to an X post published by blockchain sleuth @lookonchain, U.S. business intelligence giant MicroStrategy, founded by Michael Saylor, who is its chairman and head of Bitcoin strategy development at the moment, has made a mind-blowing unrealized profit on its massive BTC holdings now that the price of the flagship digital currency has made a staggering jump overnight.
By now, Bitcoin has faced a small decline that followed the astounding surge, but the flagship crypto is still trading above $34,500.
MicroStrategy makes huge unrealized profit
@lookonchain stated in its X post that MicroStrategy had generated approximately $746 million of unrealized profit from its enormous Bitcoin holdings – currently it owns 158,245 BTC. This amount of Bitcoin is evaluated at roughly $5.4 billion in fiat after the Bitcoin rise overnight, going up from $4.68 billion.
Since May last year, the post continues, the company has acquired 28,560 BTC worth $734 million at an average price of $25,707.
With the price of $BTC skyrocketing, #MicroStrategy’s holdings of 158,245 $BTC($5.4B) have generated an unrealized profit of ~$746M.
MicroStrategy has bought 28,560 $BTC($734M) at an average price of $25,707 since May 2022, which brings his average buying price down to $29,582. pic.twitter.com/OGlRG2WbWn— Lookonchain (@lookonchain) October 24, 2023
Michael Saylor is a Bitcoin evangelist, who states in all his interviews that he "will be buying Bitcoin at the top forever," and this is part of the company's long-term strategy based on Bitcoin investment.
The company has never sold any Bitcoin yet, and Saylor has several times stated that a long-term Bitcoin investment strategy should be at least 10 years. MicroStrategy began to actively acquire Bitcoin in August 2020. The most recent acquisition made by it was in late September, when the company purchased 5,445 BTC, paying roughly $147,300,000 for that BTC stash.
Saylor shows why his Bitcoin investment has been justified
Over the weekend, Michael Saylor took to the X platform to share the evidence that the company's Bitcoin investment strategy has been more than justifying itself in terms of profits (even though they are not selling any BTC).
Saylor shared a diagram that demonstrated that since August 2020, Bitcoin's growth has outpaced such traditional market indexes as the S&P 500 and Nasdaq, as well as such traditional safe haven assets as silver and gold.
While Bitcoin's increase constituted 147%, the S&P 500 went up by 26%, and Nasdaq grew even less – 18%. As for gold, it has gone down 3%; silver dropped a lot more, 19%, and bonds lost 24%. "Bitcoin is stronger," Saylor tweeted in that post.