MicroStrategy's Bitcoin Fortune Swings by $840 Million on Every Price Move

MicroStrategy's massive Bitcoin holdings have made it vulnerable to wild swings in cryptocurrency prices. The company owns over 840,000 Bitcoins, which are valued at an average of $75,385 each. A recent surge in Bitcoin prices has reversed the bleeding for MicroStrategy, but its expensive buys remain underwater.

The sudden spike in BTC prices over the past week has added $2.85 billion to MicroStrategy's unrealized profits. However, its more expensive purchases from 2025 still have a long way to go before breaking even.

With Bitcoin up 22% over the past seven days and trading above $78,000, many investors who fled earlier are rushing back in. A $10,000 increase in Bitcoin would add $8.4 billion to MicroStrategy's holdings, while a decline of the same size would erase just as much.

MicroStrategy's stock was at a similar price around September 2024, and the company saw its shares surge by 280% as Bitcoin rallied by around 100%. However, some analysts warn that the average cost today is significantly higher, which may hold back MicroStrategy's stock even if BTC doubles from here.