MicroStrategy's Bitcoin Holdings Surpass $3 Billion in Unrealized Profit

MicroStrategy’s Bitcoin Holdings Reach $9 Billion, Generating Massive Unrealized Profit

MicroStrategy, the business intelligence firm led by Bitcoin advocate Michael Saylor, has seen its Bitcoin holdings surge in value, resulting in billions of dollars in unrealized profit. The company’s bet on Bitcoin has proven to be highly lucrative during the current bull market.

MicroStrategy Holds Almost 1% of Bitcoin’s Circulating Supply

At present, MicroStrategy holds over $9 billion worth of Bitcoin, equivalent to approximately 190,000 Bitcoins. This accounts for nearly 1% of the total circulating supply of Bitcoin, which stands at 19.6 million BTC.

Steady Accumulation of Bitcoin Since 2020

MicroStrategy began investing in Bitcoin in August 2020 when institutional interest in the cryptocurrency started to rise. Initially purchasing $250 million worth of Bitcoin, the company has consistently added to its holdings since then. According to a recent disclosure, MicroStrategy acquired its 190,000 BTC at a total cost of $5.93 billion.

Bitcoin’s Strong Performance Boosts MicroStrategy’s Profits

In the past week alone, Bitcoin has experienced significant growth and is on track to surpass the $50,000 mark for the first time in two years. With a 12% increase over the past seven days, MicroStrategy’s Bitcoin holdings are now valued at around $9.1 billion, resulting in an unrealized profit of approximately $3.17 billion.

MicroStrategy’s Long-Term Approach to Bitcoin Investment

MicroStrategy views Bitcoin as digital gold and a long-term store of value. The company has demonstrated a deliberate and methodical approach to building its Bitcoin holdings despite price fluctuations. CEO Michael Saylor has indicated that MicroStrategy intends to hold onto its Bitcoin for the foreseeable future and may continue acquiring more in the future.

Potential for Further Profits with Bitcoin’s Continued Growth

While Bitcoin’s volatility is acknowledged, MicroStrategy’s early investment in the cryptocurrency has already proven successful. As the Bitcoin market continues to thrive, with the approaching Bitcoin halving and the increasing popularity of spot Bitcoin ETFs, MicroStrategy stands to benefit even more. If Bitcoin reaches $100,000 or higher, as some analysts predict, MicroStrategy’s unrealized profits could potentially reach tens of billions of dollars.

Featured image from Pexels, chart from TradingView