How Much Profits Microstrategy's Bitcoin Stack Made In 2023?

As Microstrategy wraps up another large Bitcoin acquisition, here’s how the company’s holdings as a whole have performed in the year 2023.

Microstrategy Turned Its Bitcoin Profit-Loss Balance Around This Year

In a Quicktake post, the CryptoQuant Netherlands community manager, Maartunn, has broken down the performance of Microstrategy‘s Bitcoin holdings over 2023.

During the year, the company made eight large acquisitions in total. The below chart highlights the timing of each of these purchases.

The history of the BTC acquisitions made by the firm | Source: CryptoQuant

Microstrategy kicked off the year with 132,883 BTC in their wallets and added an additional 56,267 BTC with their purchases this year. The firm’s total holdings now stand at 189,150 BTC. This means that the purchases this year have been responsible for almost 30% of their current stack.

The latest of these acquisitions was just revealed by the company during the past 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.

Prior to this year’s purchases, the company had invested a total of $3.9 billion into the cryptocurrency, but now their total investment stands at around $5.9 billion.

The actual value of their BTC reserve, however, exceeds $8.1 billion at the current exchange rate, meaning that the company’s stack is sitting at gains of more than $2.2 billion right now.

Below is a chart that displays how the profit-loss ratio of Microstrategy’s holdings has changed over the years.

The value of the metric appears to have been quite positive in recent days | Source: CryptoQuant

As is apparent from the graph, Microstrategy’s Bitcoin holdings were carrying an unrealized loss just a while ago. In fact, the firm’s stack has been in loss for the better part of 2023.

At the start of the year, the company’s coins were in a net loss of around $1.8 billion. With the holdings now being in profits of over $2.2 billion, Microstrategy has seen a swing of a whopping $4 billion during 2023. It would appear that the bets of Saylor and co have worked out, at least so far.

What Does This Recent Acquisition Mean For The BTC Price?

Following the news of the latest purchase, many are wondering about how this acquisition might affect the wider Bitcoin market. The on-chain analytics firm Santiment has made a post on X today discussing about how news related to the company generally affects the asset.

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 relating to the firm have led to bullish market movement,” says Santiment. From the above chart, it’s visible that the last acquisition by the firm lead to a 17% rally for BTC over the next five days.

After the company revealed its latest purchase, BTC did enjoy some uptrend at first, as it surged towards the $43,800 level, but the coin has since already come back down, now trading around $43,100.