MicroStrategy Increases Bitcoin Holdings To 190,000

MicroStrategy Increases Bitcoin Holdings To 190,000

Crypto holdings of Nasdaq-listed MicroStrategy now comprise a total of 190,000 BTC tokens, as it has acquired an additional 31,755 tokens since the end of the third quarter.

Now, the company is referring to itself as the first Bitcoin development company in the world that has a unique proposition, even in comparison with spot Bitcoin exchange traded funds (ETFs).

MicroStrategy said that it is a publicly trading company that is dedicated to using its activities for the development of the Bitcoin network via advocacy, financial markets, and technology innovation.

The acquisition

On Tuesday, MicroStrategy shared its earnings report for the fourth quarter of 2023, which showed that it had acquired 31,755 BTC tokens after the third quarter.

This included the 850 BTC tokens that the company had acquired in the previous month. Michael Saylor, the executive chairman of MicroStrategy, announced the acquisition on X.

He stated that the acquisition of the 850 BTC tokens for a value of $37.2 million had increased the company’s total holdings to 190,000 BTC.

As of December 31st, the carrying value of the digital assets owned by MicroStrategy was $3.626 billion, which is around 189,150 BTC tokens.

The company explained that it also included cumulative impairment losses of about $2.269 billion. The acquisition of the 31,755 tokens is the largest quarterly increase in the company’s BTC holdings in 3 years.

The Chief financial officer of MicroStrategy, Andrew Kang, also said that it was the 13th quarter in a row in which it had expanded its holdings.

The fourth quarter

He stated that in the fourth quarter of 2023, the company had significantly benefitted from the increase in bitcoin prices.

This is because the 190,000 BTC tokens that the company owned had an aggregate purchase price of around $31,224.

In its earnings presentation, MicroStrategy highlighted its ‘unique value proposition’ as compared to Bitcoin ETFs.

It said that it can accumulate bitcoin through proceeds from debt and equity financing as well as cash flows and the crypto token serves as its primary treasury reserve asset.

The offerings

In addition, the company also said that it is developing and offering industry-leading AI (artificial intelligence) backed enterprise analytics software.

The said software is aimed at promoting the company’s vision of ‘Intelligence Everywhere’.

MicroStrategy further asserted that it was using its software development capabilities for the development of Bitcoin applications.

It went on to say that its focus on technology innovation, bitcoin strategy, and its operating structure offer a unique opportunity to create value when combined.

The company has had a pro-Bitcoin stance for quite some time and has been accumulating the leading cryptocurrency for several years now.