As Microstrategy wraps up another big bitcoin acquisition, here's how the company's holdings as a whole have performed in 2023.
Microstrategy changed its bitcoin profit and loss balance this year
In a quick shot mailCryptoQuant Netherlands community manager Maartunn has broken down the performance of Microstrategy's bitcoin holdings during 2023.
During the year, the company made a total of eight major acquisitions. The following table highlights the timing of each of these purchases.
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The history of the btc acquisitions made by the firm | Source: CryptoQuant
Microstrategy started the year with 132,883 btc in its wallets and added an additional 56,267 btc with its purchases this year. The company's total holdings now stand at 189,150 btc. This means that this year's purchases have been responsible for almost 30% of your current stack.
The latest of these acquisitions was revealed by the company last day. “MicroStrategy has acquired an additional 14,620 btc for ~$615.7 million at an average price of $42,110 per bitcoin.” Announced co-founder Michael Saylor.
Before this year's purchases, the company had invested a total of $3.9 billion in the cryptocurrency, but now its total investment is around $5.9 billion.
However, the actual value of its btc stash exceeds $8.1 billion at the current exchange rate, meaning the company's stack has profits of over $2.2 billion right now.
Below is a chart showing how the profit-loss ratio of Microstrategy holdings has changed over the years.
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The value of the metric appears to have been quite positive in recent days | Source: CryptoQuant
As evident from the chart, Microstrategy's bitcoin holdings were carrying an unrealized loss just a while ago. In fact, the company's stack has been in losses for most of 2023.
At the beginning of the year, the company's coins had a net loss of around $1.8 billion. With holdings now generating profits of more than $2.2 billion, Microstrategy has seen a swing of a whopping $4 billion during 2023. It looks like Saylor and company's bets have worked, at least so far.
What does this recent acquisition mean for the btc price?
Following news of the latest purchase, many are wondering how this acquisition could affect the broader bitcoin market. The chain analysis firm Santiment has made a mail on X today discussing how company-related news generally affects the asset.
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The reaction that the cryptocurrency's price has shown following Microstrategy-related news | Source: Santiment on X
“We see that recent purchases and positive news related to the company have caused an upward movement in the market,” says Santiment. In the chart above, you can see that the latest acquisition by the company caused a 17% rally for btc over the next five days.
After the company revealed its latest purchase, btc enjoyed some bullishness at first as it rose towards the $43,800 level, but since then the coin has already turned lower, now trading around $43,100.
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The trend in the btc price over the last few days | Source: BTCUSD on TradingView
Featured image from iStock.com, Charts from TradingView.com, Santiment.net, CryptoQuant.com
