MicroStrategy’s Bitcoin Holdings Surge to $5.93 Billion Amid Q4 Challenges

• A report discloses that MicroStrategy’s Bitcoin holding reached 190,000 BTC ($5.93 billion) after acquiring 850 Bitcoins in January. 
• Its net loss of $249.7 in Q4 2022 saw a turnaround to net income of $89.1 million in Q4 2023. 

Business analytics firm MicroStrategy is known as one of the largest publicly traded companies to put Bitcoin (BTC) on its balance sheet. According to reports, the company holds 0.901% of the total Bitcoin in circulation. Using the current value compared to its cost basis, MicroStrategy has a profitable ratio of 1.39. Over the years, the company has consistently accumulated digital assets at all rounds of price levels.

As captured in a current report, another 850 Bitcoins were acquired in January for $37.2 million. Since the end of the third quarter, it has purchased 31,755 Bitcoins at $1.25 billion. This implies that the cost per Bitcoin purchased was $39,411. As of press time, the business analytics firm had its Bitcoin portfolio reaching 190,000 BTC ($5.93 billion) with an average cost per asset of $31,224. 

MicroStrategy's Bitcoin holdings soar to 190,000 BTC despite Q4 revenue dip! With BTC resilient above $43,000, institutional confidence remains high. #Bitcoin #MicroStrategy #CryptoInvesting pic.twitter.com/9u0kLGLa9U

— Marcel Knobloch aka Collin Brown (@CollinBrownXRP) February 7, 2024

A discussion surrounding its fourth quarter performance in 2023 led to the discovery that MicroStrategy recorded a year-over-year decline of 6 percent, positioning its revenue at $124.5 million.

In terms of loss from operations, MicroStrategy recorded $42.8 million, a staggering improvement from the $193.7 million loss recorded in the previous year. In Q4 2022, the company had a net loss of $249.7 million or $21.93 per share. Interestingly, it turned this into a net income of $89.1 million or $4.96 per share in the period under review. 

Reason for the Turnaround, Michael Saylor’s Love for Bitcoin

This massive development has been partly linked to the reduced digital asset impairment losses of $39.2 million in the quarter. The previous year recorded $197.6 million. The carrying value of Bitcoin held by the company stood at $3.626 billion as of December 31, 2023. According to the report, this reflected a cumulative impairment loss of $2.269 billion since the acquisition.

Regardless, the original cost basis of its Bitcoin holdings was $5.895 billion. Also, its market value was $8.045 billion, indicating a value appreciation of $2.15 billion. 

The founder and former CEO of MicroStrategy, Michael Saylor, has always been a Bitcoin maximalist. In 2021, he predicted that its market cap could reach $100 trillion in the future. 

…Then it’s going to subsume negative-yielding sovereign debt and other monetary indexes until it grows to $100 trillion. Once it gets to $10 trillion, its volatility will be dramatically less. As it marches toward $100 trillion, you’re going to see the growth rates fall, the volatility fall, and it’s going to be a stabilizing influence in the entire financial system of the 21st century.

In 2022, Saylor emphasized his belief in the digital asset, labeling it as an instrument for economic empowerment. According to him, Bitcoin is the only asset that is truly decentralized and without an issuer. Participating in the ongoing debate on the securities status of some cryptos, Saylor declared that a vast majority of them are unregistered securities since they have an issuer, and would pass the Howey Test. 

As of press time, Bitcoin was trading at $42,933.55 after making an upside move of 0.4% in the last 24 hours. Currently, Bitcoin is showing a neutral sign with a score of 50/100.