MicroStrategy Amplifies Bitcoin Holdings to 190,000 BTC, Records $89.1M Net Income in Q4 2023
Summary:
MicroStrategy, the largest public company holder of Bitcoin, acquired an additional 850 BTC in January, bringing its total holdings to 190,000 BTC ($8.1 billion). In its Q4 2023 earnings call, the company reported a net income of $89.1 million, a significant recovery from the previous year's $249.7 million loss. The company's revenues, however, decreased by 6.1% to $124.5 million. MicroStrategy's executive chairman, Michael Saylor, credited the company's 2023 performance to the recognition of digital asset transformation by investors and projected a future of regulated, institutional growth for Bitcoin.
The largest known Bitcoin (BTC) holder among public companies, MicroStrategy, has announced the acquisition of 850 additional BTC in January, bolstering their total cache to 190,000 BTC, valued at $8.1 billion. The software business firm's Chief Financial Officer, Andrew Kang, let it be known during the Q4 2023 earnings call on February 6, that 56,650 BTC were secured in 2023 alone, with an average procurement price of $33,580. The profit statement highlighted a net profit of $89.1 million, seeing a significant recovery from the preceding year's $249.7 million deficit. However, the company's revenues dipped by 6.1% to $124.5 million during the same span. Michael Saylor, MicroStrategy's Executive Chairman, pointed to the recognition of digital assets transformation by investors as a key driver of the firm's 2023 performance.
Saylor professed 2024 as the initiation of Bitcoin's era as a trusted institutional-grade asset class, categorizing it as a pioneer in the modern era. He proclaimed the impending 15 years as an era of regulatory, institutional dynamism for Bitcoin, contrasting starkly from the past 15 years. After being the inaugural public company to allocate capital for Bitcoin purchase in December 2020, MicroStrategy's stocks have observed over 300% growth, whereas tech giants like Microsoft and Google trailed at around 95% growth in the same duration. Notably, after the introduction of Bitcoin in its portfolio, MicroStrategy has witnessed over 300% growth.
Saylor also credited the emergence of spot Bitcoin exchange-traded funds as a monumental turning point, transitioning Bitcoin from a mode of transaction to a vault of value. This transformation, according to him, dispensed with previous criticisms of the asset's incapability to act as a currency. He noted that Bitcoin's prospective for 100-fold growth was undiminished by these criticisms.
While some industry experts worried that competition from Bitcoin exchange-traded product providers like BlackRock and Fidelity could prove detrimental to MicroStrategy's market share, Saylor remained unfazed. He reassured that the company would unswervingly forge ahead with software creation and collaborate with Bitcoin developers working on BTC-based layer-2 networks and other ecosystem participants, to boost revenue in the years to come. He finished the earnings call by affirming that MicroStrategy would persist in its Bitcoin buying spree.
Published At
2/7/2024 3:06:00 AM
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