MicroStrategy Expands Bitcoin Holdings with $37M Investment

MicroStrategy, a well-known company that specializes in business software, has announced that it acquired an additional 850 BTC (Bitcoin) in January. This brings their total Bitcoin holdings to a staggering 190,000 BTC, which is currently worth around $8.1 billion. During an earnings call on February 6th, the company’s chief financial officer shared that they acquired a total of 56,650 BTC in 2023, with an average price of $33,580.

Despite the ongoing pandemic and economic turbulence, MicroStrategy managed to post a net income of $89.1 million in the fourth quarter of 2023, compared to a loss of $249.7 million in the previous year. Their revenue did decrease by 6.1% to $124.5 million in the same time frame. The company attributes its success to investors recognizing the digital transformation of assets, particularly Bitcoin.

MicroStrategy’s executive chairman, Michael Saylor, believes that 2024 will be a pivotal year for Bitcoin as it establishes itself as an institutional-grade asset class. He sees the next 15 years as a period of high growth for Bitcoin, with increased regulation and institutional interest. Saylor also praised the recent emergence of Bitcoin exchange-traded funds (ETFs) and their impact on establishing Bitcoin as a store of value rather than just a medium of exchange.

Despite concerns from some market pundits about competition from traditional finance firms like BlackRock and Fidelity, Saylor remains confident in MicroStrategy’s position. He emphasized that the company would continue to collaborate with Bitcoin developers on BTC-based layer-2 networks and work towards increasing their revenue in the coming years. Saylor concluded the earnings call by stating that MicroStrategy plans to further expand its Bitcoin holdings.

MicroStrategy made headlines in December 2020 as the first publicly traded company to allocate capital to Bitcoin. Since then, the company’s share price has experienced significant growth, outperforming well-established tech companies like Microsoft and Google. Saylor believes that Bitcoin’s future as a store of value looks bright and sees no reason why it can’t continue to outperform and increase in value.