MicroStrategy buys more Bitcoin in January, resulting in unrealized gains of over 300 billion yen

Bitcoin strategy progress

MicroStrategy, a US company that is a leader in the field of business intelligence (BI), is increasing its investment in the cryptocurrency Bitcoin (BTC).

The company’s co-founder and chairman, Michael Saylor, announced on the 7th that the company spent a total of $37.2 million (5.5 billion yen) to purchase an additional 850 BTC in January.

In January, @MicroStrategy acquired an additional 850 BTC for $37.2 million and now holds 190,000 BTC. Please join us at 5pm ET as we discuss our Q4 2023 financial results and answer questions about our #bitcoin strategy and business outlook. $MSTR https://t.co/j5SbcELsue

— Michael Saylor (@saylor) February 6, 2024

In its Q4 2023 financial report, MicroStrategy’s Chief Financial Officer (CFO) Andrew Kang provided details about the company’s Bitcoin strategy and future business prospects.

According to Kang, the company has acquired an additional 31,755 BTC since the end of the third quarter, the largest quarterly increase in the past three years. The company has continued to add Bitcoin as an asset for 13 consecutive quarters.

Mr. Kang also experienced a significant increase in Bitcoin prices in the fourth quarter, and through strategic capital market activities and the use of cash reserves, he has been able to increase his Bitcoin holdings and deliver further value to shareholders. He explained that he was able to continue.

Currently, MicroStrategy holds 190,000 BTC at an average acquisition price of $31,224, and the unrealized gain is equivalent to $2,237,440,000 (approximately 330 billion yen) (at the time of writing, the Bitcoin price is $43,000). (based on).

connection:“We will use part of the profits from selling our own stock to buy more Bitcoin” Saylor, Chairman of MicroStrategy

Appealing value to shareholders

MicroStrategy purchased $250 million worth of Bitcoin in August 2020 as part of a capital allocation strategy, betting on the potential for high returns and Bitcoin’s appeal as a hedge against inflation. This bold strategy has paid off, with the company’s stock more than tripling from $150 at the start of 2020 to $490.

Source: Yahoo Finance

The company’s main business is also doing well, and the company continues to innovate technologically, including launching the AI-based BI tool “MicroStrategy AI” into the market. MicroStrategy President and CEO Fung Le said the company’s continued commitment to the cloud is paying off, with double-digit growth in subscription services revenue in the fourth quarter and full year. It states that it is connected.

Le emphasized that he believes the combination of business structure, Bitcoin strategy, and focus on technological innovation will provide unprecedented value creation opportunities for shareholders.

connection:Why does MicroStrategy, a listed US company, continue to buy large amounts of Bitcoin?

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