MicroStrategy adds 3,000 bitcoins to its treasury, now holds over $10 billion worth of the cryptocurrency

MicroStrategy, a business intelligence software company that has been aggressively investing in bitcoin, announced on Tuesday that it has purchased an additional 3,000 bitcoins for about $155 million. The company now owns 193,000 bitcoins, worth over $10 billion at current prices, making it the largest corporate holder of the cryptocurrency.

The company said it bought the 3,000 bitcoins between February 15 and 25, at an average price of $51,813 per bitcoin. This is slightly higher than the average price of $45,714 per bitcoin that the company paid for its previous purchase of 4,167 bitcoins in early April.

MicroStrategy has been steadily accumulating bitcoin since August 2020, when it made its first purchase of 21,454 bitcoins for $250 million. Since then, the company has raised more than $2 billion through convertible debt offerings and equity sales to fund its bitcoin purchases. The company has also adopted bitcoin as its primary treasury reserve asset, saying that it provides a hedge against inflation and a superior store of value than fiat currencies.

The company’s CEO, Michael Saylor, is one of the most vocal proponents of bitcoin, often tweeting and speaking about its benefits and potential. He has also encouraged other companies and institutions to follow MicroStrategy’s example and invest in bitcoin. In February, he hosted a virtual conference called “Bitcoin for Corporations”, where he shared his insights and strategies with over 1,400 attendees from various sectors.

MicroStrategy’s bitcoin bet has paid off handsomely for the company and its shareholders, as the cryptocurrency has surged more than 500% since its first purchase. The company’s stock price has also soared more than 300% in the past year, outperforming most of its peers in the software industry. However, the company’s bitcoin exposure also comes with significant risks, as the cryptocurrency is known for its high volatility and regulatory uncertainty.

According to its latest earnings report, MicroStrategy generated $124.5 million in revenue and $14.2 million in net income in the fourth quarter of 2023, representing a 6.1% decrease and a 10.4% increase, respectively, from the same period in 20223. The company said its subscription services revenue, which reflects its cloud-based software offerings, grew 23% year-over-year, while its product licenses and product support revenues declined 11.4% and 2.1%, respectively.

The company also reported a $1.03 billion gain from its bitcoin holdings in 2023, which was partially offset by a $576.6 million impairment loss due to the accounting treatment of digital assets3. The company said it expects to incur additional impairment losses in the future if the market price of bitcoin declines below its carrying value.

MicroStrategy is not the only company that has invested in bitcoin in recent months. Other notable companies that have added bitcoin to their balance sheets include Block, the payments company founded by Jack Dorsey, Tesla, and Galaxy Digital, the digital asset management firm led by former hedge fund manager Mike Novogratz.

The growing adoption of bitcoin by corporations and institutions has been one of the main drivers of its rally in 2023 and 2024, as it increases the demand and legitimacy of the cryptocurrency. However, some analysts and regulators have warned that bitcoin still faces significant challenges and risks, such as environmental concerns, cyberattacks, fraud, theft, hacking, and regulatory crackdowns.

As of Tuesday, February 25, 2024, bitcoin was trading at around $52,000. The cryptocurrency has a market capitalization of about $1 trillion, making it larger than most of the world’s companies and currencies.

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