How Much Profit Is Firm In Now?
Strategy has just announced its brand new Bitcoin purchase. Here’s how the profit-loss situation of the firm’s holdings looks now.
Strategy Has Made A New Bitcoin Acquisition Worth $764 Million
In a new post on X, Strategy Chairman Michael Saylor has shared the announcement related to the latest Bitcoin purchase by the company. With this new buy, the firm has added another 7,390 BTC to its holdings.
These tokens were purchased at a price of about $103,498 per coin or approximately $764.9 million in total. This is the third acquisition that the company has made in this month of May and it’s far larger than the $180 million first buy, but significantly falls behind the $1.34 billion second purchase.
Following this acquisition, Strategy now holds about 576,230 BTC. The company has spent a total of $40.18 billion on its BTC purchases, which comes down to about $69,726 per coin. This value is clearly significant under the current spot price, so the firm’s holdings would be in notable profit.
CryptoQuant community analyst Maartunn has shared a chart in an X post that shows exactly how much profit Strategy is in at the moment.
The trend in the unrealized profit/loss held by Strategy over the years | Source: @JA_Maartun on X
As displayed in the above graph, Strategy has naturally seen its unrealized gain spike alongside the latest surge in the cryptocurrency’s price. The firm’s Bitcoin stack is now sitting on a whopping $21.1 billion in profit.
From the chart, it’s visible that the company’s holdings have remained in the green since late 2023, being unshaken by any volatility that BTC has faced during the past year. Naturally, if the current BTC rally is going to last, then Strategy should maintain its greenness in the near term.
As for whether the run can actually sustain, an indicator that can provide hints about it is the Relative Strength Index (RSI). As analyst Ali Martinez has explained in an X post, the daily value of the metric has surged into the overbought territory recently.
The trend in the 14-day RSI of BTC during the past year | Source: @ali_charts on X
The RSI is a metric that basically measures the speed and magnitude of the changes happening in any asset’s price over a given period. In the current case, the period is the 14-day one.
When the indicator’s value is greater than 70, it can be a sign that Bitcoin is becoming overpriced. On the other hand, it being under 30 implies underbought conditions.
As is apparent from the chart, the Bitcoin RSI fell out of the overbought region earlier, but now, it has made a return to it. As such, if the indicator is anything to go by, it’s possible that BTC could encounter turbulence in the coming days.
BTC Price
Bitcoin has gone through a rollercoaster over the past day with its price witnessing sharp swings in either direction, with the latest one taking it to $105,200.
Looks like the price of the coin has seen a surge in the past few hours | Source: BTCUSDT on TradingView
Featured image from Dall-E, Glassnode.com, CryptoQuant.com
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