MicroStrategy has once again made headlines by purchasing an additional 850 BTC in January, substantially increasing its cryptocurrency holdings. The technology titan, under the leadership of CEO Michael Saylor, spent $37.5 million on this recent acquisition. The company’s continuous investment in Bitcoin cements its status as a major player in the cryptocurrency investment arena.
Strategic Cryptocurrency Acquisitions Continue
The company did not halt its ambitious Bitcoin accumulation after their latest purchase. Since the end of Q3, MicroStrategy has secured another 31,755 Bitcoins, investing around $1.3 billion. For 13 quarters in a row, the firm has been consistently growing its Bitcoin inventory, regardless of the fluctuating market conditions. The total holdings have now reached 190,000 Bitcoins with an average purchasing price of $31,224 each, indicating a total investment upward of $6 billion. CEO Phong Lee emphasized the company’s strategic moves in 2023 to strengthen its Bitcoin reserves.
Lee highlighted MicroStrategy’s recent launch of an AI-powered business intelligence tool, MicroStrategy AI, aligning with its growth and innovation strategy. The company is set on fusing its operational business with Bitcoin strategy and technological advancements to drive shareholder value. CFO Andrew Kang underscored the gains from the Bitcoin price rise in Q4, confirming MicroStrategy’s plans to keep bolstering its Bitcoin assets.
MicroStrategy’s Bitcoin Investment Pays Off
MicroStrategy’s earnings report reveals the financial details behind its Bitcoin investment. Despite a cumulative impairment loss of $2.269 billion on its Bitcoin assets, the company has a book value of $3.6 billion for its digital currency cache. The book value per Bitcoin is roughly $19,172, considering a cost basis of $5.8 billion and a current market value of $8 billion. The company’s Bitcoin investment led to its first profit in nine quarters due to significant tax benefits.
The firm reported a profit of $461 million, or $31.79 per share, in Q1, compared to a loss in the previous year, chiefly due to a 72% boost in Bitcoin prices and a one-time tax gain of $453.2 million.
Advancements in Core Software Business
Apart from its Bitcoin engagement, MicroStrategy also saw an increase in its software revenue, reaching $121 million and surpassing analysts’ expectations. This rise in revenue is a result of Michael Saylor’s 2020 strategic decision to diversify the company’s reserves by investing in Bitcoin. With the company’s stock price having doubled and mirroring Bitcoin’s solid performance, Saylor’s foresight in Bitcoin’s potential seems to have been well-founded.