MicroStrategy, a software company, remains committed to its “Bitcoin Strategy,” as evidenced by its recent acquisition of additional Bitcoin (BTC).
Key Points:
- MicroStrategy’s co-founder, Michael Saylor, announced the acquisition of 850 BTC for $37.2 million in January, increasing the company’s total BTC holdings to 190,000 BTC.
- The company’s fourth-quarter 2023 financial results revealed the purchase of 31,755 BTC since the end of the third quarter for $1.25 billion, averaging $39,411 per BTC.
- MicroStrategy’s Bitcoin bet is still profitable, with an unrealized profit of $2.2 billion on its BTC holdings, acquired at an average cost of $31,224 per BTC.
- The company’s CFO, Andrew Kang, attributed the success to the significant increase in Bitcoin’s price in the fourth quarter of 2023, which allowed them to accumulate more BTC and create value for shareholders.
- Concerns have been raised about the long-term viability of MicroStrategy’s BTC strategy, given the launch of Spot Bitcoin ETFs, which offer a more direct investment option for investors seeking BTC exposure.
- MicroStrategy’s stock has declined by over 21% since the beginning of the year, possibly due to investors rotating their investments from MicroStrategy to Spot Bitcoin ETFs.
