In a recent press release on February 6, business intelligence firm MicroStrategy confirmed that they bought $1.25B of Bitcoin in Q4 of 2023. It revealed its Bitcoin acquisitions for the fourth quarter of 2023, marking an exceptional year for the company.
MicroStrategy’s Chief Financial Officer, Andrew Kang, announced a significant milestone, stating that they bought $1.25B of Bitcoin in Q4. marking the company’s largest quarterly increase in Bitcoin holdings over the past three years. This brings MicroStrategy’s total Bitcoin holdings to an impressive 190,000, solidifying its position as a major corporate Bitcoin investor.
Despite the remarkable Bitcoin accumulation, MicroStrategy reported a 6.1% decrease in total revenues for Q4 2023 compared to the same period in 2022. Total revenues amounted to $124.5 million, attributed to declines in various revenue streams, including product licenses, subscription services, product support, and other services.
MicroStrategy’s relentless Bitcoin accumulation strategy has attracted attention from investors and analysts. The company’s holdings, now totaling 190,000 bitcoins, emphasize its bullish stance on cryptocurrency as a treasury reserve asset. However, questions arise with the revenue dip in Q4, prompting discussions about the company’s overall financial performance amid its Bitcoin-centric strategy. MicroStrategy plans to address these concerns in a live video webinar, offering insights into its Q4 2023 financial results and strategic direction.
Strategic Capital Boosts Bitcoin Holdings
MicroStrategy President and CEO, Phong Le, expressed the company’s strategic capital move in 2023, aiming to significantly increase Bitcoin holdings. Le stated, “We believe that the combination of our operating structure, bitcoin strategy, and focus on technology innovation provides a unique opportunity for value creation for our shareholders.”
Bitcoin Acquisition Details
The firm disclosed acquiring 31,755 BTC since the end of Q3 2024, totaling $1.25 billion, with an average cost of $39,411 per bitcoin. As of February 5, 2024, MicroStrategy now holds an impressive 190,000 BTC, costing $5.93 billion, at an average of $31,224 per BTC. The current market value of these holdings stands at approximately $8 billion.
Record Quarterly Increases and Ongoing Purchases
MicroStrategy CFO Andrew Kang highlighted that the latest additions marked the company’s largest quarterly increase in Bitcoin holdings in three years, marking its 13th consecutive quarter of Bitcoin purchases. Kang noted that, aside from strategic capital market activities and cash, the company also benefited from the rise in Bitcoin prices during the final quarter of 2023.
Founder and Chairman of MicroStrategy, Michael Saylor, shared that the company purchased 850 BTC in January at a price of $37.2 million.
Corporate Landscape
MicroStrategy proudly declared itself as the largest corporate holder of Bitcoin. Data from CoinGecko suggests that other significant Bitcoin treasuries include Galaxy Digital, Marathon Digital, Hut 8, Tesla, and Coinbase. In total, 28 companies hold $11 billion worth of Bitcoin, representing about 1.35% of the total Bitcoin market cap, according to CoinGecko data.
MicroStrategy’s non-Bitcoin performance for Q4 reported total revenues of $124.5 million, showing a 6% year-over-year decrease. However, subscription services revenues were up 23% year-over-year, reaching $21.5 million. On February 6, MSTR stock experienced a 1.51% increase.
MicroStrategy Dominates Corporate Bitcoin Holdings
The fact that MicroStrategy bought $1.25B of Bitcoin in Q4 is indeed a bold move. The company’s strategic capital decisions, continuous Bitcoin purchases, and favorable market conditions have contributed to the impressive growth in its Bitcoin portfolio, showcasing a unique approach to value creation for its shareholders. As the crypto landscape evolves, MicroStrategy stands out as a key player in the corporate adoption of Bitcoin, setting the stage for further developments in the intersection of traditional finance and digital assets.
Also Read: The Truth Unveiled: China Lied to Us About the Crypto Ban!
