Michael Saylor, Chairman & CEO of MicroStrategy incorporated, made a boggling revelation through his tweet on February 1, 2022:
Between December 30, 2021, and January 31, 2022, the company purchased approximately 660 bitcoins for roughly $25.0 million in cash, at an average price of approximately $37,865 per bitcoin, inclusive of fees and expenses. As of January 31, 2022, the company had about 125,051 bitcoins bought for an aggregate purchase price of $3.78 billion and an average purchase price of roughly $30,200 per bitcoin, including fees and expenditures.
MicroStrategy’s BTC buying spree
They are known for their continued addition of BTC to its treasury. Here is a graph showing the previous bitcoin purchase history.
Total holdings of MicroStrategie’s bitcoin are now worth $4,800,746,363.48 at the time of writing, as per the reports by CoinMarketCap. Bitcoin is trading at $38,403.87 with a 24-hour trading volume of $20,436,093,940. It is down 0.30% in the last 24 hours.
Despite bitcoin’s recent collapse, MicroStrategy shows no indications of halting its Bitcoin purchases. In a recent interview, Chief Financial Officer Phong Le said,
“Our strategy with bitcoin is to buy and hold, so to the extent, we have excess cash flows, or we find other ways to raise money, we continue to dump it into bitcoin.”
MicroStrategy will continue purchasing bitcoin this year, Le said, but it is unclear if it would acquire more than last year; the business has no intentions to sell the asset. He added that MicroStrategy is also considering buying bitcoin-backed bonds if the market gets more liquid, probably in the next year or two. “We’re continually exploring different ways to be additive to our shareholders as it relates to bitcoin,” he added.
Is MicroStrategy’s software business prospering?
MicroStrategy reported a net loss of $90 million or $8.43 a share in the fourth quarter, below average projections for a profit of 89 cents a share.
MicroStrategy’s shares have plummeted 19 percent since Thursday, ending at $370.45 on Monday. Le traced the dip primarily due to the more significant selloff of technology and bitcoin-related stocks. They reported a net loss of $36.1 million for the quarter ended September 30, increasing from a loss of $14.2 million in the prior-year period. Revenue, meanwhile, climbed 0.5 percent to $128 million for the period from a year earlier. As per the information from Tradingview, they are presently standing at $373.