9 months ago
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Software company MicroStrategy is not relenting on its ‘Bitcoin Strategy’ as a recent development suggests. The company’s co-founder, Michael Saylor, revealed that the firm had ramped up its BTC holdings following another acquisition of the flagship crypto token.
MicroStrategy Acquires More BTC
Saylor stated in an X (formerly Twitter) post that his company had acquired an additional 850 BTC for $37.2 million in January. This brings the company’s total BTC holdings to 190,000 BTC. MicroStrategy also recently released its fourth quarter 2023 financial results, which provided more insights into its Bitcoin portfolio.
According to the report, the software company has acquired 31,755 BTC since the end of the third quarter of 2023 for $1.25 billion, or an average of $39,411 per BTC. These purchases are said to mark the largest quarterly Bitcoin holding increase in the last three years and the 13th consecutive quarter of the company adding more BTC to its balance sheet.
Meanwhile, MicroStrategy’s Bitcoin bet is still in profit. The company’s financials showed that it had acquired its 190,000 BTC at an average of $31,224 per BTC, or a total cost of $5.93 billion. Considering that Bitcoin is currently trading at around $43,000, the company has an unrealized profit of $2.2 billion for its BTC holdings.
‘Bitcoin Strategy’ Still Paying Off
MicroStrategy’s Chief Financial Officer (CFO) Andrew Kang mentioned that the company benefitted from the significant increase in Bitcoin’s price in the fourth quarter of 2023. That period happened to be when BTC’s price continued to surge on the back of rumors regarding the potential approval of the Spot Bitcoin ETFs.
Kang also revealed that the company saw it as an opportunity to accumulate more BTC and “accrete incremental value” for their shareholders. These shareholders are reported to have benefitted from the company’s “unique Bitcoin strategy.” as the company’s stocks rose by over 300% last year thanks in no small way to its BTC exposure.
Meanwhile, it is worth mentioning that there have been concerns about how much longer MicroStrategy’s BTC strategy could influence its success, especially with the launch of Spot Bitcoin ETFs. Some investors have before now invested in MicroStrategy because of the BTC exposure, but now Spot Bitcoin ETFs seem to serve as a better alternative for such investors.
Data from MarketWatch shows that the company’s stock has declined by just over 21% since the beginning of the year. This price drop could be in part due to investors who have sold off their stocks and rotated them to the Spot Bitcoin ETFs.
Featured image from Bitcoinsensus, chart from Tradingview.com
