- MicroStrategy’s strategic accumulation of 190,000 bitcoins showcases its leadership in corporate cryptocurrency investment, emphasizing trust in Bitcoin’s value growth.
- Despite market fluctuations, MicroStrategy’s focused evolution towards cloud services and AI demonstrates adaptability and commitment to technological innovation.
MicroStrategy has boosted its Bitcoin holdings, as revealed by Michael Saylor through an update on X, in sync with the disclosure of the economic achievements for the last quarter of 2023. Throughout January, the company acquired 850 Bitcoin at a cost of $37.2 million, increasing its stash to 190,000 BTC.
🚀 MicroStrategy's Bitcoin holdings soar to 190,000 BTC despite Q4 revenue dip! With BTC resilient above $43,000, institutional confidence remains high. #Bitcoin #MicroStrategy #CryptoInvesting 📈💰 pic.twitter.com/9u0kLGLa9U
— Marcel Knobloch aka Collin Brown (@CollinBrownXRP) February 7, 2024
MicroStrategy’s maneuver to augment its Bitcoin stockpile has been noticeable, enlarging its reserve by 31,755 bitcoins since the end of the third quarter for $1.25 billion, with an average cost of $39,411 per unit.
As of February 5, 2024, MicroStrategy’s Bitcoin arsenal totals 190,000 bitcoins, purchased at an average of $31,224 per bitcoin, culminating in an investment of $5.93 billion. This strategy has positioned MicroStrategy at the pinnacle as the leading corporate accumulator of Bitcoin.
According to Bitcoin Treasuries, MicroStrategy holds 0.901% of the total BTC supply, demonstrating a profitability of 1.39% compared to the current value of BTC against its acquisition price.
Regarding the results for the fourth quarter of 2023, the company experienced a 6% decline in its overall revenues compared to the previous year, recording $124.5 million. However, MicroStrategy has managed to evolve, focusing on cloud solutions and launching MicroStrategy AI, its artificial intelligence tool for corporations.
Despite the mixed results of the fourth quarter of 2023, where the company reported an operational loss of $42.8 million, there was a substantial improvement compared to the loss of $193.7 million from the previous year.
On another note, a net income of $89.1 million, or $4.96 per share, was recorded, reversing a net loss of $249.7 million, or $21.93 per share, in the same period of the previous year.
This turnaround is attributed, in part, to a decrease in digital asset impairment losses, which stood at $39.2 million for the quarter, down from $197.6 million the previous year.
As of December 31, 2023, the book value of MicroStrategy’s digital assets was estimated at $3.626 billion, reflecting accumulated impairment losses of $2.269 billion since their acquisition.
Despite these figures, the original cost and market value of the company’s Bitcoin holdings were $5.895 billion and $8.045 billion, respectively, indicating significant growth in value.
MicroStrategy’s ongoing investment in Bitcoin, despite price volatility, underscores institutional confidence in this cryptocurrency. At the time of writing this document, the value of BTC remains strong, surpassing the $43,000 mark.
