MicroStrategy's $1.25 Billion Bitcoin Purchase in Q4 2023
Date: 2024-02-07 Author: Dima Zakharov Categories: BLOCKCHAIN
MicroStrategy, known for its strategic Bitcoin investments, revealed its substantial purchases of the cryptocurrency in the fourth quarter of 2023. The company's CEO, Phong Le, emphasized the extraordinary year for MicroStrategy, citing strategic capital allocation and a focus on technological innovation as key drivers for value creation.
MicroStrategy acquired 31,755 BTC in Q4 2023 at an average price of $39,411 per Bitcoin, totaling $1.25 billion. As of February 5, 2024, the company holds a total of 190,000 BTC, valued at $5.93 billion. Despite the current market value of these assets being approximately $8 billion, MicroStrategy continues to demonstrate confidence in Bitcoin's long-term potential.
Andrew Kahn, MicroStrategy's CFO, highlighted the company's significant quarterly Bitcoin purchases, marking the 13th consecutive quarter of acquisitions. Beyond direct Bitcoin acquisitions, MicroStrategy benefited from price appreciation in Q4 2023.
MicroStrategy's financial results for Q4 also revealed a 6% decrease in total revenue compared to the same period last year, with subscription revenues increasing by 23% annually. Despite this, MSTR shares saw a 1.51% increase on February 6, 2024.
Furthermore, MicroStrategy asserted its position as the largest corporate holder of Bitcoin, with holdings far surpassing other entities like Galaxy Digital, Marathon Digital, and Tesla. Overall, 28 companies collectively own Bitcoin assets worth $11 billion, representing around 1.35% of Bitcoin's total market capitalization.
