MicroStrategy Increases Bitcoin Holdings to 190,000 BTC
Software company MicroStrategy has continued to increase its Bitcoin position, with its total holdings now reaching 190,000 BTC.
Acquisition of 850 BTC in January
In January, MicroStrategy acquired an additional 850 BTC for $37.2 million. This brings the average price of the purchase to $43,764, slightly above the current trading price of $43,206.
Average Price of Previous Acquisitions
According to the company’s Q4 earnings report, MicroStrategy acquired all its coins at an average price of $31,224 per coin.
Largest Quarterly Increase in Bitcoin Holdings
The Q4 earnings report also revealed that MicroStrategy acquired 31,755 additional bitcoins since the end of the third quarter. This marks the largest quarterly increase in the company’s bitcoin holdings in the last three years.
Declining Revenue and Gross Profit
In contrast to its increasing Bitcoin holdings, MicroStrategy’s Q4 revenue dropped by 6.1% compared to the fourth quarter of 2022. Gross profit also declined from $105.8 million to $96.3 million.
MicroStrategy’s Bitcoin Holdings Compared to ETFs
With its 190,000 BTC holdings, MicroStrategy still owns more Bitcoin than all nine newly launched Bitcoin ETFs combined (approximately 181,000 BTC). Additionally, it owns nearly 1% of all BTC in circulation.
Saylor Selling Personal Shares for More BTC
MicroStrategy’s chairman, Michael Saylor, announced that he is selling his personal shares in MSTR to acquire more BTC. Despite this, MSTR is still trading down 16% since before the Bitcoin ETFs went live.
Hot Take: MicroStrategy Continues to Strengthen Its Bitcoin Position
MicroStrategy’s ongoing accumulation of Bitcoin demonstrates its strong belief in the long-term potential of the cryptocurrency. With a total of 190,000 BTC and plans to acquire even more, the company is positioning itself as a significant player in the Bitcoin market. Despite facing some financial challenges in Q4, MicroStrategy remains committed to increasing its Bitcoin holdings and capitalizing on future price appreciation. As more companies and institutions recognize the value of Bitcoin, MicroStrategy’s early adoption and substantial holdings could prove to be a wise strategic move.
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