Strategy has just announced a brand new bitcoin purchase. This is the current profit loss situation of the company’s holdings.
Strategy to value new Bitcoin purchases at $764 million
In a new article on X, Strategy Chairman Michael Saylor shared an announcement related to the company’s latest purchase of Bitcoin. With this new buy, the company added another 7,390 BTC to its stake.
The tokens cost about $103,498 per coin, totaling about $764.9 million. This is the company’s third acquisition this month in May, which is well past the first purchase of $180 million, but is significantly behind the second-second purchase of $1.34 billion.
After this acquisition, the strategy now has about 576,230 BTC. The company has spent $40.18 billion on its BTC purchases, down to about $69,726 per coin. At the current spot price, this value is obviously important, so the company’s holdings will be significant profits.
Implicit community analyst Maartunn shared a chart in an X post that accurately shows how much profit strategies are currently available.
The trend in the unrealized profit/loss held by Strategy over the years | Source: @JA_Maartun on X
As shown in the above chart, the strategy naturally sees its unrealized gain spikes and the latest gains in cryptocurrency prices. The company’s Bitcoin stack is now enjoying profits of up to $21.1 billion.
As can be seen from the chart, the company’s holdings have remained green since the end of 2023, which is not the case with any volatility BTC has faced over the past year. Naturally, if the current BTC gathering will continue, the strategy should keep it green in the short term.
As for whether the operation can be truly maintained, the indicator that can provide a prompt is the Relative Strength Index (RSI). As analyst Ali Martinez explained in X’s post, the daily value of the metric has recently poured into overbought territory.
The trend in the 14-day RSI of BTC during the past year | Source: @ali_charts on X
RSI is an indicator that basically measures the speed and amplitude of changes occurring in the price of any asset over a given period. In the current situation, the period is 14 days.
When the value of the indicator is greater than 70, it may indicate that Bitcoin has become too high. On the other hand, it is under 30 means insufficient conditions.
From the chart, Bitcoin RSI fell from over-purchased areas earlier, but has now recovered. Therefore, if the indicator has any measures, BTC may experience turbulence in the coming days.
BTC price
Bitcoin has experienced a roller coaster over the past day, with its price seeing a sharp swing in either direction, with the latest price pushing 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 images from Dall-E, GlassNode.com, CryptoQuant.com
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