MicroStrategy raises $1.5 billion to buy more bitcoins

abdelaziz Fathi

MicroStrategy, the largest corporate investor in bitcoin, has raised over $1.5 billion in the first quarter and used it to buy more bitcoin (BTC).

Microstrategy CEO

The software company now owns 214,400 BTC, valued at around $13.6 billion. MicroStrategy’s bitcoin holding is almost 1% of the total circulating supply of 19.7 million tokens. This strategy provides a scarcity value, making it a good option for equity investors to get exposure to the digital asset.

On the operational side, the company’s business is moving to the cloud, which helped it achieve double-digit subscription services revenue growth in the first quarter. However, it reported a net operating loss of $53.1 million after a digital asset impairment charge of $191.6 million.

Brokerage firm Canaccord cut MicroStrategy’s price target to $1,590 from $1,810 but kept its buy rating. MicroStrategy’s stock fell 2.5% to $1,261 in after-hours trading.

MicroStrategy chose not to adopt the new digital asset fair value accounting standard, which could have shown a large profit due to the rise in bitcoin’s value in the first quarter.

Short sellers betting against MicroStrategy (MSTR.O) lost $1.92 billion since March as the stock rally was supported by the growing mainstream acceptance of bitcoin.

In addition to MicroStrategy’s losses, traders shorting other key players in the cryptocurrency market, such as Coinbase (COIN.O) and bitcoin miner CleanSpark (CLSK.O), also faced substantial losses, totaling $593.50 million and $106.40 million, respectively.

MicroStrategy’s stock premium is largely driven by investors seeking bitcoin exposure, particularly those who find it difficult to invest directly in the cryptocurrency or its ETFs.

Since Saylor’s initial investment in Bitcoin in 2020, the cryptocurrency’s value has soared by 675%, contributing to a remarkable surge in MicroStrategy’s stock price.

Short selling is the practice of selling borrowed shares with the hope of repurchasing them at a lower price to pocket the difference. It continues to be a prevalent strategy in the crypto market despite recent losses experienced by those betting against its leading companies.

Read this next


Exclusive: Autochartist CEO Ilan Azbel Delivers Insight on AI at iFX EXPO LATAM 2024

In an insightful interview with FinanceFeeds at iFX EXPO LATAM 2024, Ilan Azbel, CEO of Autochartist, discussed the evolution of trading technology, effective trader engagement strategies, the integration of AI in trading analytics, and the cautious approach of regulated brokers towards its adoption.

Market News

Weekly data: Oil and Gold: Price review for the week ahead.

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Crypto Insider

Octa’s insights: the approval of spot Ethereum ETFs is not going as planned.

The approval of spot Bitcoin exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC) in January 2024 triggered a substantial rise in the bitcoin price. Also, interest in the proposed spot Ethereum ETF has increased

Industry News

Bursa Malaysia introduces Trading Reminders

The Trading Reminder flag aims to alert investors to exercise caution when encountering a stock displaying persistent unusual price and/or volume movements after the listed company’s UMA response.

Industry News

21 Republican representatives want to “End the Fed”

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame.”

Retail FX

Scope Markets launches unleveraged trading

“Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”


Unlocking Profit Potential: Earn Returns with DecodeEX Experience Bonus!

DecodeEX, the innovative brokerage subsidiary of Decode Global, announced its experience bonus campaign, offering every user the opportunity to maximize their strategic trading potential with up to $10,000 in experience bonus. 

Market News

Pretiorates’ Thoughts 28 – Precious metals and base metals out of control

Ten days ago we mentioned in Pretiorates’ Thoughts 26: Chapter 2 should start with Precious Metals.

Retail FX

Webull launches discount brokerage in Malaysia

“Making investing more inclusive and accessible to all, Webull Malaysia brings best-in-class tools and information to empower investors of all levels with knowledge and skills to help them make better investment decisions and achieve their investment goals.”