diff --git a/migrations/1747151261415_recalculate-balances.js b/migrations/1747151261415_recalculate-balances.js
new file mode 100644
index 0000000000..dc73af890d
--- /dev/null
+++ b/migrations/1747151261415_recalculate-balances.js
@@ -0,0 +1,100 @@
+/* eslint-disable camelcase */
+
+exports.shorthands = undefined;
+
+exports.up = pgm => {
+  // Remove old balances.
+  pgm.sql(`TRUNCATE TABLE ft_balances`);
+
+  // Recalculate STX balances
+  pgm.sql(`
+    WITH all_balances AS (
+        SELECT sender AS address, -SUM(amount) AS balance_change
+        FROM stx_events
+        WHERE asset_event_type_id IN (1, 3) -- Transfers and Burns affect the sender's balance
+        AND canonical = true AND microblock_canonical = true
+        GROUP BY sender
+      UNION ALL
+        SELECT recipient AS address, SUM(amount) AS balance_change
+        FROM stx_events
+        WHERE asset_event_type_id IN (1, 2) -- Transfers and Mints affect the recipient's balance
+        AND canonical = true AND microblock_canonical = true
+        GROUP BY recipient
+    ),
+    net_balances AS (
+      SELECT address, SUM(balance_change) AS balance
+      FROM all_balances
+      GROUP BY address
+    ),
+    fees AS (
+      SELECT address, SUM(total_fees) AS total_fees
+      FROM (
+          SELECT sender_address AS address, SUM(fee_rate) AS total_fees
+          FROM txs
+          WHERE canonical = true AND microblock_canonical = true AND sponsored = false
+          GROUP BY sender_address
+        UNION ALL
+          SELECT sponsor_address AS address, SUM(fee_rate) AS total_fees
+          FROM txs
+          WHERE canonical = true AND microblock_canonical = true AND sponsored = true
+          GROUP BY sponsor_address
+      ) AS subquery
+      GROUP BY address
+    ),
+    rewards AS (
+      SELECT
+        recipient AS address,
+        SUM(
+          coinbase_amount + tx_fees_anchored + tx_fees_streamed_confirmed + tx_fees_streamed_produced
+        ) AS total_rewards
+      FROM miner_rewards
+      WHERE canonical = true
+      GROUP BY recipient
+    ),
+    all_addresses AS (
+      SELECT address FROM net_balances
+      UNION
+      SELECT address FROM fees
+      UNION
+      SELECT address FROM rewards
+    )
+    INSERT INTO ft_balances (address, balance, token)
+    SELECT
+      aa.address,
+      COALESCE(nb.balance, 0) - COALESCE(f.total_fees, 0) + COALESCE(r.total_rewards, 0) AS balance,
+      'stx' AS token
+    FROM all_addresses aa
+    LEFT JOIN net_balances nb ON aa.address = nb.address
+    LEFT JOIN fees f ON aa.address = f.address
+    LEFT JOIN rewards r ON aa.address = r.address
+  `);
+
+  // Recalculate FT balances
+  pgm.sql(`
+    WITH all_balances AS (
+        SELECT sender AS address, asset_identifier, -SUM(amount) AS balance_change
+        FROM ft_events
+        WHERE asset_event_type_id IN (1, 3) -- Transfers and Burns affect the sender's balance
+          AND canonical = true 
+          AND microblock_canonical = true
+        GROUP BY sender, asset_identifier
+      UNION ALL
+        SELECT recipient AS address, asset_identifier, SUM(amount) AS balance_change
+        FROM ft_events
+        WHERE asset_event_type_id IN (1, 2) -- Transfers and Mints affect the recipient's balance
+          AND canonical = true 
+          AND microblock_canonical = true
+        GROUP BY recipient, asset_identifier
+    ),
+    net_balances AS (
+      SELECT address, asset_identifier, SUM(balance_change) AS balance
+      FROM all_balances
+      GROUP BY address, asset_identifier
+    )
+    INSERT INTO ft_balances (address, balance, token)
+    SELECT address, balance, asset_identifier AS token
+    FROM net_balances
+  `);
+};
+
+exports.down = pgm => {};
diff --git a/src/datastore/pg-write-store.ts b/src/datastore/pg-write-store.ts
index 796e89300a..fd0e55ee2c 100644
--- a/src/datastore/pg-write-store.ts
+++ b/src/datastore/pg-write-store.ts
@@ -203,7 +203,7 @@ export class PgWriteStore extends PgStore {
 
   async update(data: DataStoreBlockUpdateData): Promise<void> {
     let garbageCollectedMempoolTxs: string[] = [];
-    let batchedTxData: DataStoreTxEventData[] = [];
+    let newTxData: DataStoreTxEventData[] = [];
 
     await this.sqlWriteTransaction(async sql => {
       const chainTip = await this.getChainTip(sql);
@@ -223,7 +223,7 @@ export class PgWriteStore extends PgStore {
       // Insert microblocks, if any. Clear already inserted microblock txs from the anchor-block
       // update data to avoid duplicate inserts.
       const insertedMicroblockHashes = await this.insertMicroblocksFromBlockUpdate(sql, data);
-      batchedTxData = data.txs.filter(entry => {
+      newTxData = data.txs.filter(entry => {
         return !insertedMicroblockHashes.has(entry.tx.microblock_hash);
       });
 
@@ -264,7 +264,7 @@ export class PgWriteStore extends PgStore {
 
         // Clear accepted microblock txs from the anchor-block update data to avoid duplicate
         // inserts.
-        batchedTxData = batchedTxData.filter(entry => {
+        newTxData = newTxData.filter(entry => {
           const matchingTx = acceptedMicroblockTxs.find(tx => tx.tx_id === entry.tx.tx_id);
           return !matchingTx;
         });
@@ -285,29 +285,32 @@ export class PgWriteStore extends PgStore {
         const q = new PgWriteQueue();
         q.enqueue(() => this.updateMinerRewards(sql, data.minerRewards));
         if (isCanonical) {
-          q.enqueue(() => this.updateStxBalances(sql, batchedTxData, data.minerRewards));
-          q.enqueue(() => this.updateFtBalances(sql, batchedTxData));
+          // Use `data.txs` directly instead of `newTxData` for these STX/FT balance updates because
+          // we don't want to skip balance changes in transactions that were previously confirmed
+          // via microblocks.
+          q.enqueue(() => this.updateStxBalances(sql, data.txs, data.minerRewards));
+          q.enqueue(() => this.updateFtBalances(sql, data.txs));
         }
         if (data.poxSetSigners && data.poxSetSigners.signers) {
           const poxSet = data.poxSetSigners;
           q.enqueue(() => this.updatePoxSetsBatch(sql, data.block, poxSet));
         }
-        if (batchedTxData.length > 0) {
+        if (newTxData.length > 0) {
           q.enqueue(() =>
             this.updateTx(
               sql,
-              batchedTxData.map(b => b.tx)
+              newTxData.map(b => b.tx)
             )
           );
-          q.enqueue(() => this.updateStxEvents(sql, batchedTxData));
-          q.enqueue(() => this.updatePrincipalStxTxs(sql, batchedTxData));
-          q.enqueue(() => this.updateSmartContractEvents(sql, batchedTxData));
-          q.enqueue(() => this.updatePoxSyntheticEvents(sql, 'pox2_events', batchedTxData));
-          q.enqueue(() => this.updatePoxSyntheticEvents(sql, 'pox3_events', batchedTxData));
-          q.enqueue(() => this.updatePoxSyntheticEvents(sql, 'pox4_events', batchedTxData));
-          q.enqueue(() => this.updateStxLockEvents(sql, batchedTxData));
-          q.enqueue(() => this.updateFtEvents(sql, batchedTxData));
-          for (const entry of batchedTxData) {
+          q.enqueue(() => this.updateStxEvents(sql, newTxData));
+          q.enqueue(() => this.updatePrincipalStxTxs(sql, newTxData));
+          q.enqueue(() => this.updateSmartContractEvents(sql, newTxData));
+          q.enqueue(() => this.updatePoxSyntheticEvents(sql, 'pox2_events', newTxData));
+          q.enqueue(() => this.updatePoxSyntheticEvents(sql, 'pox3_events', newTxData));
+          q.enqueue(() => this.updatePoxSyntheticEvents(sql, 'pox4_events', newTxData));
+          q.enqueue(() => this.updateStxLockEvents(sql, newTxData));
+          q.enqueue(() => this.updateFtEvents(sql, newTxData));
+          for (const entry of newTxData) {
             q.enqueue(() => this.updateNftEvents(sql, entry.tx, entry.nftEvents));
             q.enqueue(() => this.updateSmartContracts(sql, entry.tx, entry.smartContracts));
             q.enqueue(() => this.updateNamespaces(sql, entry.tx, entry.namespaces));
diff --git a/tests/api/address.test.ts b/tests/api/address.test.ts
index 216e50595b..4e0ebfaf34 100644
--- a/tests/api/address.test.ts
+++ b/tests/api/address.test.ts
@@ -3057,4 +3057,108 @@ describe('address tests', () => {
     expect(json6.results.length).toEqual(4);
     expect(json6.results[0].tx_id).toEqual('0xffa1');
   });
+
+  test('balance calculation after microblock confirmations', async () => {
+    const addr1 = 'SP3D6PV2ACBPEKYJTCMH7HEN02KP87QSP8KTEH335';
+    const addr2 = 'SP2TBW1RSC44JZA4XQ1C2G5SZRGSMM14C5NWAKSDD';
+
+    // Send some initial balance for addr1
+    await db.update(
+      new TestBlockBuilder({
+        block_height: 1,
+        index_block_hash: '0x0001',
+        parent_index_block_hash: '',
+      })
+        .addTx({
+          tx_id: '0x1101',
+          token_transfer_recipient_address: addr1,
+          type_id: DbTxTypeId.TokenTransfer,
+          token_transfer_amount: 20_000n,
+          fee_rate: 50n,
+        })
+        .addTxStxEvent({
+          amount: 20_000n,
+          block_height: 1,
+          recipient: addr1,
+          tx_id: '0x1101',
+        })
+        .build()
+    );
+    // Send STX to addr2 in a microblock in transaction 0x1102
+    await db.updateMicroblocks(
+      new TestMicroblockStreamBuilder()
+        .addMicroblock({
+          parent_index_block_hash: '0x0001',
+          microblock_hash: '0xff01',
+          microblock_sequence: 0,
+        })
+        .addTx({
+          tx_id: '0x1102',
+          sender_address: addr1,
+          token_transfer_recipient_address: addr2,
+          type_id: DbTxTypeId.TokenTransfer,
+          token_transfer_amount: 2000n,
+          fee_rate: 100n,
+          microblock_hash: '0xff01',
+          microblock_sequence: 0,
+        })
+        .addTxStxEvent({
+          amount: 2000n,
+          block_height: 2,
+          sender: addr1,
+          recipient: addr2,
+          tx_id: '0x1102',
+        })
+        .build()
+    );
+    await db.update(
+      new TestBlockBuilder({
+        block_height: 2,
+        index_block_hash: '0x0002',
+        parent_index_block_hash: '0x0001',
+        parent_microblock_hash: '0xff01',
+        parent_microblock_sequence: 0,
+      })
+        // Same transaction 0x1102 now appears confirmed in an anchor block
+        .addTx({
+          tx_id: '0x1102',
+          sender_address: addr1,
+          token_transfer_recipient_address: addr2,
+          type_id: DbTxTypeId.TokenTransfer,
+          token_transfer_amount: 2000n,
+          fee_rate: 100n,
+          microblock_hash: '0xff01',
+          microblock_sequence: 0,
+        })
+        .addTxStxEvent({
+          amount: 2000n,
+          block_height: 2,
+          sender: addr1,
+          recipient: addr2,
+          tx_id: '0x1102',
+        })
+        .build()
+    );
+
+    // Check that v1 balance matches v2 balance for both accounts.
+    let result = await supertest(api.server).get(`/extended/v1/address/${addr1}/stx`);
+    expect(result.status).toBe(200);
+    expect(result.type).toBe('application/json');
+    let v1balance = JSON.parse(result.text).balance;
+    expect(v1balance).toBe('17900');
+    result = await supertest(api.server).get(`/extended/v2/addresses/${addr1}/balances/stx`);
+    expect(result.status).toBe(200);
+    expect(result.type).toBe('application/json');
+    expect(JSON.parse(result.text).balance).toBe(v1balance);
+
+    result = await supertest(api.server).get(`/extended/v1/address/${addr2}/stx`);
+    expect(result.status).toBe(200);
+    expect(result.type).toBe('application/json');
+    v1balance = JSON.parse(result.text).balance;
+    expect(v1balance).toBe('2000');
+    result = await supertest(api.server).get(`/extended/v2/addresses/${addr2}/balances/stx`);
+    expect(result.status).toBe(200);
+    expect(result.type).toBe('application/json');
+    expect(JSON.parse(result.text).balance).toBe(v1balance);
+  });
 });