Key Takeaways
- The company reported a net income of $89.1 million, a significant turnaround from the $249.7 million loss recorded in the previous year.
- The company announced that it had added 850 BTC to its holdings in January, bringing its total Bitcoin stash to 190,000 BTC
In its recent earnings call for Q4 2023, MicroStrategy, a prominent enterprise software company known for holding a substantial amount of Bitcoin, shared some significant updates. The company announced that it had added 850 BTC to its holdings in January, bringing its total Bitcoin stash to an impressive 190,000 BTC, valued at approximately $8.1 billion.
MicroStrategy’s Chief Financial Officer, Andrew Kang, revealed that the company had been steadily accumulating Bitcoin throughout 2023, acquiring a total of 56,650 BTC at an average price of $33,580. This consistent acquisition of Bitcoin has contributed to MicroStrategy’s status as one of the largest public holders of the cryptocurrency.
Despite facing some challenges, MicroStrategy returned to profitability in the fourth quarter, buoyed by a tax benefit related to its Bitcoin holdings. The company reported a net income of $89.1 million, a significant turnaround from the $249.7 million loss recorded in the previous year. However, its revenue saw a slight decrease to $124.5 million.
According to MicroStrategy’s Executive Chairman, Michael Saylor, the company’s performance reflects a broader recognition among investors of the transformative potential of digital assets. Saylor expressed optimism about Bitcoin’s future, describing 2024 as a pivotal year for the cryptocurrency’s institutional adoption.
MicroStrategy made headlines in December 2020 when it became the first publicly traded company to invest in Bitcoin. Since then, its share price has soared by over 300%, outperforming major tech stocks like Microsoft and Google.
Saylor emphasized the significance of spot Bitcoin exchange-traded funds (ETFs), which he believes elevate Bitcoin from a mere medium of exchange to a legitimate store of value. He dismissed concerns about competition from traditional finance firms, underscoring MicroStrategy’s commitment to Bitcoin accumulation and collaboration with BTC-based networks.
“We don’t need to address any of the currency criticisms anymore. Simply as a store of value, there’s no reason Bitcoin can’t continue to outperform and 100X from where it is right now,”Saylor added.
In his official statement, CFO Andrew Kang reiterated MicroStrategy’s ongoing Bitcoin acquisition strategy. He highlighted the company’s successful track record, stating that MicroStrategy now holds 190,000 BTC at an aggregate purchase price of $31,224.
