MicroStrategy increases its investment in BTC by $1,25 billion in the fourth quarter

Given the current bitcoin exchange rate, its unrealized gains exceed $2,2 billion

07.02.2024 - 09:31

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2 min

What’s new? The analytics software company MicroStrategy has purchased 31 755 bitcoins at a rate of $39 411 since last October for a total of $1,25 billion. According to a new report, in total, it holds 190 000 coins with an average purchase price of $31 224 for a total value of $5,93 billion by February 5. MicroStrategy maintains its status as the largest holder of the first cryptocurrency among publicly traded companies.

The company’s report

What else is known? At the time of writing, BTC is trading on the Binance crypto exchange at $42 964, so MicroStrategy’s unrealized gain on its investment in the asset is $2,23 billion.

Along with this, the company reported that total revenue for Q4 declined 6% year-over-year to $124,5 million compared to the same period in 2022. At the same time, operating expenses fell by 53,6% to $139 million, while software license revenue rose by 23% to $21,5 million.

According to CEO Phong Le, in 2023, the company is focusing on raising capital to increase its bitcoin investments, as well as developing and launching a MicroStrategy AI-based business intelligence tool.

MicroStrategy (ticker MSTR) shares are up 294% over 2023, hitting a local two-year peak of $631,62 by the end of December. They have fallen by 21% since the start of the new year and are trading at $498 at the time of writing.

In late December, analysts at the Santiment platform noted that another purchase of bitcoins by MicroStrategy “caused some euphoric waves among traders” and led to a bullish market movement that saw the asset’s rate momentarily rise to $44 700. Previously, news of the company’s investments in bitcoin repeatedly provoked jumps in the asset.

In early December, S3 Partners analysts reported that the “paper” losses of holders of short positions in shares of crypto firms such as MicroStrategy exceeded $6 billion since the beginning of the year.

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