MicroStrategy bolsters balance sheet with acquisition of 850 BTC, expanding total holdings to 190,000 BTC
MicroStrategy, the analytical software company founded by Michael Saylor, recently acquired an additional 850 BTC for $37.2 million. This latest purchase has increased MicroStrategy’s Bitcoin holdings to 190,000 BTC, which is valued at over $8.1 billion at current prices.
According to a press release from the company, as of February 5th, the total cost of the purchased BTC was $5.93 billion, with an average price of $31,224 per BTC. Despite a 6% decrease in total revenues to $124.5 million compared to the previous year, MicroStrategy saw a significant increase in subscription services revenues, which rose by 23% to $21.5 million during the same period.
MicroStrategy CEO Phong Le described 2023 as an “extraordinary year” and highlighted the company’s strategic capital raising efforts to strengthen its Bitcoin holdings. The company’s CFO, Andrew Kang, noted that they have benefited from the significant increase in Bitcoin prices in the fourth quarter of 2022, along with their strategic capital market activities and available cash.
In December 2022, MicroStrategy made another substantial Bitcoin purchase, acquiring 14,620 BTC at an average price of $42,110 per coin, totaling over $615 million. The company began accumulating Bitcoin in 2020 as a hedge against the perceived threat of inflation during the global pandemic.
In related news, an expert has called MicroStrategy shares overvalued and predicted a price correction. Stay updated by following us on Google News.
