7 months ago
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MicroStrategy acquired extra 850 Bitcoins for $37.2 million in January despite the poor stock performance since the beginning of the year.
MicroStrategy Inc (NASDAQ: MSTR) stock has dropped about 21 percent since the calendar flipped in January to trade around $490 on Wednesday. MicroStrategy, a United States-based company that engages in the provision of enterprise analytics and mobility software, has significantly benefited from the Bitcoin strategy adopted by Michael Saylor three years ago. Notably, the company has accumulated more Bitcoins than any other publicly traded company in the past few years around the world.
As a result, MicroStrategy is well-positioned to reap more profits from the confirmed macro bull market in the coming quarters. Furthermore, the adoption of Bitcoin in the United States through the recently approved spot Bitcoin exchange-traded funds (ETFs) has further increased the bullish case scenario amid the upcoming halving. Meanwhile, MicroStrategy has a market valuation of about $8.2 billion with 14.75 million shares outstanding.
MicroStrategy’s Bitcoin Plan
On Tuesday, MicroStrategy released its fourth quarter 2023 financial results that ended on December 31. According to the report, MicroStrategy acquired 37, 755 Bitcoins during the three months for about $1.25 billion. In addition to the 850 Bitcoins that MicroStrategy acquired in January, the company now holds a total of 190,000 coins at a total cost of $5.93 billion. As a result, the company is looking at unrealized profits of more than $2 billion on its Bitcoin holdings.
In January, @MicroStrategy acquired an additional 850 BTC for $37.2 million and now holds 190,000 BTC. Please join us at 5pm ET as we discuss our Q4 2023 financial results and answer questions about our #bitcoin strategy and business outlook. $MSTR https://t.co/j5SbcELsue
— Michael Saylor⚡️ (@saylor) February 6, 2024
Notably, the company registered a 6 percent decline in total revenue during the fourth quarter to $124.5 million compared to the prior year. The product licenses and subscriptions brought in a total revenue of $39.9 million, which represented a decline of around 11.4 percent compared to the same period last year. Similarly, the product support and other services revenue for MicroStrategy decreased during the fourth quarter of 2023; thus, signing its Bitcoin holdings largely bolstered its market outlook.
“We benefited from the significant increase in Bitcoin prices in Q4 and we also continued to leverage our strategic capital markets activities and cash on hand to accumulate more Bitcoin and accrete incremental value for our shareholders. It is through our unique bitcoin strategy and solid track record that we now hold 190,000 Bitcoins at an aggregate purchase price of $31,224,” Andrew Kang, Chief Financial Officer of MicroStrategy, noted.
In addition to the Bitcoin plan that has significantly bolstered MicroStrategy’s financial statements, the company has continued to focus on emerging technologies, including Artificial Intelligence (AI). As a result, the company is confident the upcoming quarters will be more beneficial to the shareholders who have continued to see their portfolios diluted in a bid to acquire more Bitcoins.
