MicroStrategy – the business intelligence company founded by Michael Saylor – has been buying bitcoin every quarter since August 2020.
The company is the largest holder of the primary cryptocurrency, holding 140,000 BTC. It has accumulated its inventory at an average price of $29,803, which means it is currently sitting at a slight unrealized loss.
More BTC added during each quarter
Despite the volatile nature of bitcoin and the 2022 bear market that disrupted the cryptocurrency industry, MicroStrategy seems determined to continue strengthening its BTC position.
a company jump in August 2020 by purchasing more than 21,000 bitcoins and adopting a strategy focused on leading digital assets.
“Our investment in bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders.
This investment reflects our belief that Bitcoin, as the world’s most widely used cryptocurrency, is a reliable store of value and an attractive investment asset with more long-term appreciation potential than cash holding,” MicroStrategy CEO Michael Saylor said at the time.
The company remained true to Saylor’s words and continued to increase its holdings in the following years. In fact, it has bought certain amounts of BTC during each quarter so far. The company’s most significant purchase came at the beginning of its strategy when it accumulated more than 38,000 BTC in the third quarter of 2020, and then reached more than 70,000 BTC by the end of the year.
The organization has maintained its pace throughout the entirety of 2021, spending notable amounts each quarter. Due to the Bitcoin price records that year, the company’s investment became very successful, and sometime in November 2021, it was sitting On nearly $3.5 billion in unrealized earnings.
While the cryptocurrency winter of 2022 halted the bitcoin incursions for many entities, this was not the case with MicroStrategy. It bought more than 8,200 BTC over the past year, and its holdings increased even during Q2 (which saw the LUNA/UST crash) and Q4 (when it crashed). FTX takes place). Due to the decline in the price of Bitcoin, MicroStrategy had a massive unrealized loss of $1.8 billion by the end of 2022.
The trends changed with the onset of 2023 as the cryptocurrency market showed some signs of recovery. Last month, the company bet on BTC gold green for the first time since June 2022 after the leading digital asset topped $30,000.
MicroStrategy has acquired an additional 7,500 BTC since the beginning of the year. Rounding Total holdings to 140,000 BTC.
Positive start to the year
The increase in the value of Bitcoin over the past several months has benefited MicroStrategy financially, Allow To take profits during the first quarter. It recorded a net income of $461 million, while revenue from the software business exceeded estimates. This development is due in part to the tax benefits generated by the company’s BTC holdings.
The company also used the bitcoin price hike to Pay Her $205 million loan to the failed Silvergate Bank is at a 22% discount.
MicroStrategy, a publicly traded company, has seen its shares rally during the early months of the year. MSTR shares were worth around $145 on January 1, while currently, they’re hovering around $318 (up 120%).
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