MicroStrategy Bitcoin Shopping Spree Continues, Buys 850 BTC

MicroStrategy is unfazed by weak Q4 2023 performance, remains committed to buying more Bitcoin.

US-based tech firm MicroStrategy has been actively acquiring BTC since adopting a Bitcoin treasury in August 2020. Over the years, this strategy has propelled MicroStrategy to the forefront as the world’s largest corporate holding of Bitcoin, trumping all other major firms.

After snapping up over 14,620 bitcoins in 2023, MicroStrategy continues to maintain its momentum, further filling up its bags, particularly in the wake of the growing demand driven by the emergence of Bitcoin ETFs.

MicroStrategy Continues to Buy Bitcoin in 2024
MicroStrategy recently made headlines after acquiring a whopping 850 bitcoins in January, valued at $37.5 million. The firm’s shopping spree this year has solidified its position as the largest publicly traded holder of Bitcoin, with a staggering 190,000 BTC in its treasury, amounting to $8.41 billion.

In contrast, Galaxy Digital Holdings lags behind with 17,518 bitcoins, valued at $775 million.

MicroStrategy’s accumulation stands out amidst the surging demand for BTC, driven by the hype surrounding Bitcoin ETFs. Despite stiff competition from leading ETF issuers such as BlackRock and Fidelity, who collectively manage over $6 billion in assets, the tech firm remains steadfast in its buying strategy.

Even amid underwhelming quarterly performances, MicroStrategy shows no signs of slowing down its acquisition spree.

MicroStrategy Unfazed By Poor Earnings Call
While MicroStrategy has significantly increased its BTC holdings throughout 2023, marking a 500% increase compared to 2022, its fourth-quarter earnings fell below expectations.

The company reported a 6.1% decline in revenue, amounting to $124 million, and a decrease in gross profit from $105.8 million in 2022 to $96.3 million in 2023. Additionally, revenues from product licenses and subscriptions plummeted by 11% compared to 2022.

Still, despite these challenges, Michael Saylor expressed MicroStrategy’s commitment to buying more BTC in 2024.

On the Flipside
MicroStrategy’s Bitcoin strategy makes it more of a proxy for BTC investing than an enterprise software company.

MicroStrategy’s stock has declined 22% since the launch of Bitcoin spot ETFs.

At the current BTC price, MicroStrategy is sitting on an unrealized profit of $2.24 billion.

Why This Matters
With its latest purchase, MicroStrategy continues to lead the way in corporate Bitcoin adoption. Its commitment to buying bitcoins could  lend institutional legitimacy to the narrative of Bitcoin as “digital gold.”

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