MicroStrategy Doubles Down on Bitcoin Investment with Quarterly BTC Acquisitions
In a world of ups and downs, twists and turns, the Bitcoin (BTC) bulls at MicroStrategy remain firm in their conviction. The software company, co-founded by none other than the famous Bitcoin maximalist Michael Saylor, has been making quarterly purchases of the world’s largest cryptocurrency since 2020.
Continued Bullish Stance
And while BTC may have wavered in the $30,000 psychological price level, MicroStrategy saw this as an opportunity to strengthen its balance sheet, increase its stock prices, repay its debts, and avoid selling its precious holdings.
Just last month, the company made another remarkable Bitcoin purchase worth a whopping $29.3 million, bringing its total Bitcoin holdings to a staggering 140,000. That’s right folks, MicroStrategy has been accumulating BTC like it’s going out of style, purchasing the digital asset every quarter since August 2020.
Through the highs and lows of the crypto market, MicroStrategy has remained unwavering in its bullish stance on Bitcoin. In fact, the company now holds approximately 0.7% of the total BTC in circulation, representing around 20% of the daily average traded volume in spot markets.
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said MicroStrategy in 2020 when it first purchased BTC. “This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash,” added Michael Saylor, the company’s co-founder.
And it seems MicroStrategy’s bullish stance has paid off handsomely. After acquiring a whopping 38,000 BTC in the third quarter of 2020 and almost doubling it in the following quarter with over 70,000 BTC, the company saw an unrealized profit of almost $3.5 billion in November 2021.
Even the prolonged crypto winter of 2022 couldn’t dampen MicroStrategy’s spirits. The company continued to purchase BTC, acquiring around 8,200 of the digital asset last year and putting itself at approximately $1.8 billion in unrealized losses.
But as BTC’s value surged yet again, MicroStrategy’s fortunes turned around. The company recently reported a net income of $461 million in the first quarter of 2023, partly due to tax benefits from its BTC holdings.
The Bitcoin bulls at MicroStrategy show no signs of slowing down, despite the digital asset’s highly volatile nature. BTC may have seen a 3.74% loss over the past 24 hours, but that hasn’t deterred MicroStrategy from continuing to purchase the world’s largest cryptocurrency. They say fortune favors the bold, and MicroStrategy is certainly living up to that adage.