MicroStrategy, the business intelligence and software company renowned for its substantial Bitcoin investments, continues to solidify its position as a major player in the cryptocurrency space.
In a recent development, the firm announced the acquisition of an additional 122 Bitcoins for $7.8 million in April 2024, further expanding its already impressive crypto holdings.
TLDR
- MicroStrategy acquired an additional 122 Bitcoins for $7.8 million in April 2024, bringing their total holdings to 214,400 BTC.
- Since the last quarter of 2023, MicroStrategy has accumulated 25,250 Bitcoins for $1.65 billion, at an average price of $65,232 per BTC.
- MicroStrategy’s Bitcoin holdings are now valued at $7.54 billion, or $35,180 per BTC, as of April 26, 2024.
- The company reported a gross profit of $85.2 million in Q1 2024, representing a 74.0% gross margin, but also saw a 5.5% decrease in total revenues compared to Q1 2023.
- MicroStrategy’s CEO and CFO reiterated their commitment to their “Bitcoin strategy” and belief in the value creation potential of their Bitcoin holdings.
This latest purchase brings MicroStrategy’s total Bitcoin holdings to a staggering 214,400 BTC, valued at an impressive $7.54 billion as of April 26, 2024.
The average purchase price for the company’s Bitcoin reserves stands at $35,180 per BTC, indicating a long-term bullish outlook on the world’s largest cryptocurrency.
MicroStrategy’s unwavering commitment to its “Bitcoin strategy” has been a defining characteristic of the company’s operations in recent years.
Since the last quarter of 2023, the firm has accumulated an additional 25,250 Bitcoins for a total investment of $1.65 billion, a significant figure by any standard.
While MicroStrategy’s Bitcoin investments have garnered widespread attention, the company’s financial performance in the first quarter of 2024 paints a more nuanced picture.
In April, @MicroStrategy acquired an additional 122 BTC for $7.8 million and now holds 214,400 BTC. Please join us at 5pm ET as we discuss our Q1 2024 financial results and answer questions about the outlook for #BusinessIntelligence and #Bitcoin. $MSTR https://t.co/h40yyrgEb0
— Michael Saylor⚡️ (@saylor) April 29, 2024
According to its recently released financial report, the company reported a gross profit of $85.2 million, representing a respectable 74.0% gross margin. However, the company also experienced a 5.5% year-over-year decrease in total revenues, which stood at $115.2 million for the quarter.
The decline in revenues was observed across various segments, with product licenses and subscription services revenues ($35.9 million) and product support revenues ($62.7 million) both experiencing decreases of 0.9% and 4.3%, respectively, compared to the same period last year.
Despite these challenges, MicroStrategy’s leadership remains steadfast in their belief in the long-term potential of their Bitcoin strategy.
Phong Le, President and Chief Executive Officer, emphasized the company’s commitment to the continued development of the Bitcoin network through their activities in the financial markets, advocacy, and technology innovation.
“It is through our unique bitcoin strategy and solid track record as an operating company that we now hold 214,400 bitcoins at an average purchase price of $35,180 per bitcoin,” Le stated, underscoring the company’s confidence in the value proposition of their Bitcoin holdings.
Andrew Kang, MicroStrategy’s Chief Financial Officer, echoed similar sentiments, highlighting the company’s successful execution of its capital markets strategy, which included two successful convertible debt offerings in the first quarter.
Kang expressed belief that the combination of MicroStrategy’s operating structure, Bitcoin strategy, and focus on technology innovation presents a unique opportunity for value creation for the company’s shareholders.
While the financial results for the first quarter of 2024 were mixed, MicroStrategy’s unwavering dedication to its Bitcoin strategy remains a defining characteristic of the company’s operations.
As the crypto ecosystem continues to evolve, the firm’s substantial Bitcoin holdings position it as a significant player in the space, with its leadership expressing confidence in the long-term value proposition of their investments.
