MicroStrategy Generates $3 Billion in Revenue as Bitcoin Surpasses $47k

MicroStrategy Becomes a Major Beneficiary of the Bitcoin Bull Market

MicroStrategy Inc., a well-known enterprise software company and a major player in the cryptocurrency market, has experienced a significant increase in the value of its Bitcoin holdings. With Bitcoin’s price surpassing $47,000, MicroStrategy’s investment portfolio has seen substantial growth.

MicroStrategy’s Impressive Bitcoin Holdings

As of January 9, 2024, MicroStrategy holds approximately 189,150 Bitcoins, which accounts for nearly 1% of all Bitcoins in circulation. The average cost of these acquisitions is around $31,168 per Bitcoin, totaling about $5.895 billion. With Bitcoin’s price exceeding $47,000, the total market value of MicroStrategy’s Bitcoin assets has reached approximately $8.89 billion, resulting in a gain of around $3 billion.

MicroStrategy’s Journey in the Bitcoin Market

Founded in 1989, MicroStrategy has evolved from a database and business intelligence software company to becoming a prominent player in the digital asset space. Under the leadership of founder Michael Saylor, MicroStrategy embarked on its Bitcoin journey in the summer of 2020 with a focus on accumulating Bitcoin. This approach has positioned the company as the largest holder of Bitcoin among public companies.

The company made its initial investment in Bitcoin on August 11, 2020, purchasing 21,454 Bitcoins at an average price of $11,882 per Bitcoin. This marked a significant shift in MicroStrategy’s treasury management strategy and showcased its confidence in Bitcoin as a superior asset class compared to traditional cash holdings.

Challenges Faced by MicroStrategy

Despite its success, MicroStrategy faced challenges along the way. After the bull run in 2021, Bitcoin and other cryptocurrencies experienced a significant price drop. In December 2022, MicroStrategy sold 704 Bitcoins at an average price of $16,761 for tax purposes. This strategic sale deviated from its initial “buy and hold” strategy but aimed to generate tax benefits by offsetting capital losses against previous gains. There were also rumors about potential bankruptcy due to corporate loans used for Bitcoin purchases.

Latest Bitcoin Investment by MicroStrategy

Between November 30 and December 26, 2023, MicroStrategy and its subsidiaries purchased approximately 14,620 Bitcoins at an average price of about $42,110. This investment amounted to a total of around $615.7 million.

List of MicroStrategy’s Bitcoin Buying and Selling History

Here is a list of MicroStrategy’s notable Bitcoin acquisitions:

Purchased 21,454 BTC on August 11, 2020, at an average price of $11,882.
Purchased 16,796 BTC on September 14, 2020, at an average price of $10,419.
Purchased 2,574 BTC on December 4, 2020, at an average price of $19,425.
Purchased 29,646 BTC on December 21, 2020, at an average price of $21,925.
Purchased 314 BTC on January 22, 2021, at an average price of $31,808.
Purchased 295 BTC on February 2, 2021, at an average price of $33,810.
Purchased 19,452 BTC between February 24 and March 3, 2021, at an average price of $52,765.
Purchased 328 BTC on March 1, 2021, at an average price of $45,732.
Purchased 205 BTC on March 5, 2021, at an average price of $48,888.
Purchased 262 BTC on March 12, 2021, at an average price of $57,146.
Purchased 253 BTC on April 5, 2021, at an average price of $59,289.
Purchased 271 BTC on May 13, 2021, at an average price of $55,387.
Purchased 229 BTC on May 18, 2021, at an average price of $43,663.
Purchased 13,005 BTC on June 21, 2021, at an average price of $37,617.
Purchased 8,957 BTC on September 13, 2021, at an average price of $44,945.
Purchased 7,002 BTC on November 28, 2021, at an average price of $59,187.
Purchased 1,434 BTC between November 29 and December 8, 2021, at an average price of $57,477.
Purchased 1,914 BTC on December 30, 2021, at an average price of $49,229.
Purchased 660 BTC between January 1 and January 31, 2022, at an average price of $37.865.
Purchased 4.167 BTC between February and April in the year of the same year. The acquisition was worth about $45.714 per bitcoin;