In an ambitious move, MicroStrategy announced the acquisition of 31,755 Bitcoin for a hefty sum of $1.25 billion in the final quarter of 2023. This strategic move boosted the company’s Bitcoin holdings to an impressive 190,000 units, as revealed in their Q4 2023 Financial Results report.
With a clear focus on Bitcoin as a valuable asset in their portfolio, MicroStrategy’s CEO proudly stated that their investment in the digital currency had surpassed the $5.93 billion mark by the end of 2023, with an average purchase price of $31,224 per Bitcoin.
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Chief Financial Officer Andrew Kang highlighted the company’s success in consistently adding to their Bitcoin holdings for the past 13 quarters, stating that they had acquired the largest number of bitcoins in a single quarter in the last 3 years.
Kang attributed this remarkable feat to MicroStrategy’s shrewd financial moves and their ample cash reserves, which allowed them to capitalize on the surge in Bitcoin prices during Q4.
As they entered the new year with a bang, MicroStrategy’s founder and Chairman, Michael Saylor, proudly declared the acquisition of an additional 850 Bitcoin for $37.2 million in January 2024. This only solidified their commitment to investing in Bitcoin and reaping the rewards of their bold moves in the volatile cryptocurrency market.
MicroStrategy’s financial report for the fourth quarter of 2023 revealed a total revenue of $124.5 million, a 6.1% decrease from the same period in the previous year. However, when evaluated on a non-GAAP constant currency basis, this decline becomes even more significant at 7.8%.
Despite this decrease, the company managed to achieve a gross profit of $96.3 million, boasting an impressive gross margin of 77.3%. However, this fell short of their performance in the final quarter of 2022, where they recorded a gross profit of $105.8 million and a gross margin of 79.8%.
In a surprising move, asset management giant Vanguard established a significant stake in MicroStrategy, indirectly connecting itself to the world of cryptocurrency. As of the third quarter of 2023, Vanguard holds 8.24% of the company’s shares, making it the second-largest institutional investor in MicroStrategy.
While Vanguard has yet to offer direct Bitcoin exchange-traded funds (ETFs), choosing to focus on traditional assets, its indirect exposure through MicroStrategy hints at a cautious but noteworthy shift towards digital assets in the realm of traditional finance.
