MicroStrategy adds 14,620 Bitcoins, paper profit hits $2.2 billion

abdelaziz Fathi

MicroStrategy Inc. (NASDAQ: MSTR) has continued its massive bet on Bitcoin investment, buying an additional 14,620 BTC over the past month.

Microstrategy CEO

According to a Form 8-K filing, the world’s largest Bitcoin corporate holder spent $615.7 million on this latest acquisition, with an average price of $42,110 per unit, between November 30 and December 26.

This recent purchase increases MicroStrategy’s total Bitcoin holdings to 189,150 BTC, acquired at an average price of $31,168 per unit. The total expenditure on these holdings is around $5.89 billion, with the current market value estimated at $8.1 billion. This represents a net profit of $2.2 billion on paper.

In addition to its Bitcoin purchases, MicroStrategy has also sold 1 million shares, netting around $610 million, as part of its strategy to raise $750 million.

MicroStrategy’s aggressive Bitcoin acquisition strategy aligns with the vision of its co-founder and notable Bitcoin advocate, Michael Saylor. The business software company’s continued investment in the primary cryptocurrency comes amid growing anticipation for the approval of a spot BTC exchange-traded fund (ETF). The SEC’s decision on this matter, expected by January 10, is said to open gates for mainstream retail and institutional investors.

MicroStrategy’s foray into Bitcoin has not only led to substantial cryptocurrency gains but has also boosted its stock performance, with shares rising by 300% this year. Executive Chairman Michael Saylor has reiterated his belief in Bitcoin’s role as a revolutionary monetary network and a reliable hedge against inflation.

Meanwhile, the company reported a $125.8 million impairment loss on its Bitcoin holdings. This was due to the market price of Bitcoin being lower than its carrying value as of September 30, 2023. MicroStrategy remains the largest public Bitcoin holder, followed by firms like Tesla and Marathon Digital Holdings.

MicroStrategy has been known for its aggressive Bitcoin acquisition strategy, and this quarter was no exception. However, this extensive hoard of the primary cryptocurrency witnessed a bleak phase in 2022 when Bitcoin plummeted 80% from its peak in November 2021.

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