MicroStrategy Now Holds 190K Bitcoin in Reserves After Adding Another BTC Batch
MicroStrategy is one of the firms that have continued to acquire more Bitcoin to their balance sheets. In January, the firm added a new installment of 850 Bitcoins to their enterprise reserves. With the latest purchase, the total reserve of the firm has reached $8.1 billion.
At the same time, the business intelligence firm has now become one of the biggest listed firms to have Bitcoin on its balance sheet. The firm reportedly informed investors that it has purchased an additional 850 Bitcoins in January 2024. As per the notification, MicroStrategy now has 190K Bitcoins added to their reserves.
The firm confirmed its latest Bitcoin statistics during the fourth quarter earning calls of 2023. During the meeting organized on 6th February 2024 Chief Financial Officer Andrew Kang noted that the firm purchased around 56,650 Bitcoin for the year 2023 at an average cost of around $34000.
At the same time, MicroStrategy projected a net revenue of $89.1 million for last year in comparison to sustaining $249.7 million in losses for 2022. Between 2022 and 2023, the total revenue generated decreased by 6.1% or $124.5 million based on the data projections shared on 6th February 2024.
MicroStrategy’s former CEO and current executive chairperson Michael Saylor also commented on the matter of Bitcoin acquisitions. He said that for 2023 the performance is traced to investors who placed their bets on the firm based on the digital transformation potential of the digital asset.
Future of Bitcoin
He further stated that 2024 is the year when Bitcoin’s status as an institutional asset class was cemented. He also noted that Bitcoin is the newest asset class of the modern era. On this account, he claimed that the upcoming 15 years are going to bring regulatory coverage, institutional inflows, and high growth for the digital asset.
At the same time, the chairperson noted that the next period for Bitcoin is going to be different from the previous 15 years. MicroStrategy started to purchase Bitcoin in December, 2020. At the time, it became one of the few publicly traded firms to buy Bitcoin using capital allocation methods.
In comparison to 2020, MicroStrategy stock has increased by 300%. On the other hand, tech firm stocks such as Google and Microsoft declined by 95% for the same duration. Saylor also retained that Bitcoin spot ETF listings are a positive development that elevated Bitcoin from a medium of exchange to a store of value.
The Impact of Bitcoin ETFs on the Crypto Market
Speaking about the impact of Bitcoin spot ETFs, Saylor retained that the decision has added a new utility to the asset class. He noted that in this manner, Bitcoin is able to address the criticism about its utility as an instrument for payment.
The chairperson noted that with Bitcoin serving as a reserve asset backing Bitcoin spot ETFs, there are no more discussions about its usage as a payment option. He further stated that in its current form, Bitcoin is in a position to print 100x returns and continue to outperform.
Saylor also addressed the rumors that Bitcoin spot ETF issuers such as BlackRock and Fidelity may overtake some of the market share from the firm. However, the chairperson noted that he is not worried about any type of encroachment steaming from the asset management giants.
Saylor retained that the firm will continue to make software and work in tandem with Bitcoin developers. The firm has extended support for developers who are working on Bitcoin layer-2 projects and other participants that have led to a considerable increase in the overall revenue of the firm since 2020.
