MicroStrategy (NASDAQ: MSTR), a provider of enterprise business intelligence (BI) tools, acquired over 8,800 Bitcoin (BTC) in 2022, while its stock price has more than doubled since the beginning of the year, according to a recent report.
In fact, MicroStrategy purchased 8,813 BTC during the cryptocurrency fall, incurring a $1.28 billion impairment loss for 2022 and reporting a net loss of $250 million for the fourth quarter, according to the company’s financial statements released on February 2.
Taking into consideration the report, the BTC acquired during the downturn (worth more than $200 million at press time) adds up to a total of 132,500 BTC purchased by the business as of December 31, at an average price of $30,137, which indicates MicroStrategy spent $3.9 billion on Bitcoin purchases.
Andrew Kang, the CFO of the firm, commented on the results: “We may explore pursuing other transactions that capitalise on the volatility of Bitcoin prices or other market dislocations consistent with our long-term Bitcoin strategy. (…) Our company strategy and belief about the long-term acquisition, maintenance, and expansion of our Bitcoin position remain unchanged.”
His words echo those of MicroStrategy’s CFO Phong Le from January 2022, when he described the company’s strategy to ‘buy and hold’ regardless of anticipated market volatility. This was confirmed by MicroStrategy’s now-former CEO Michael Saylor, who stated that the company “structured its balance sheet so it could continue to ‘hodl’ through adversity.”
According to the most recent information received by Finbold from Google Finance on February 3, the price of MicroStrategy’s shares has climbed by 101.44% since the beginning of the year, rising from $145.02 on January 3 to $292.13 at the time of writing.
Microstrategy, as reported by Finbold in August 2022, has beaten 97% of S&P 500 equities since adopting its Bitcoin holding strategy in 2020, despite the company’s revenues falling in 2022 due to the crypto market crash.
Saylor revealed in late December the company’s intentions to deliver apps and solutions powered by the Bitcoin Lightning Network in 2023, in areas such as online content monetization, internal corporate controls, and enterprise marketing. It is also crucial to note that the recent increase in the company’s stock price matches the company’s plans for the release of such applications and solutions.
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