MicroStrategy Now Holds 190,000 BTC Worth $8.2 Billion

MicroStrategy, the business intelligence firm led by the famous Bitcoin bull Michael Saylor, has continued to stockpile Bitcoin.

According to its latest earnings report released on February 6th, the company purchased an additional 850 bitcoins in January 2023, bringing its total holdings to around 190,000 BTC.

MicroStrategy's latest acquisition represents a significant vote of confidence in the long-term potential of Bitcoin to shape the financial landscape. 

Recent Bitcoin Purchases

In the fourth quarter of 2022, MicroStrategy acquired approximately 56,650 Bitcoins at an average price of $33,580 per Bitcoin, spending roughly $1.9 billion in total. This boosted the firm's Bitcoin treasury to around 132,500 BTC by the end of 2022.

The company purchased another 850 Bitcoins in January 2023 for approximately $37 million, based on the average Bitcoin price during the month.

With its latest purchase, MicroStrategy now holds around 190,000 Bitcoins acquired at an aggregate purchase price of $4.1 billion and an average price of around $21,600 per Bitcoin.

At Bitcoin's current price of around $43,000, MicroStrategy's Bitcoin stash is worth approximately $8.2 billion, representing a sizable unrealized gain on its investment so far.

The company appears poised to continue buying more bitcoin, with MicroStrategy CEO Michael Saylor stating the firm will "continue to acquire and hold additional bitcoin as we seek to create additional value for shareholders."

MicroStrategy's Bitcoin Strategy

MicroStrategy first began purchasing bitcoin back in August 2020 and has steadily accumulated more since then.

Saylor has been an extremely vocal proponent of Bitcoin, touting it as the world's best inflation hedge and digital store of value. 

MicroStrategy's strategic Bitcoin acquisitions thrive on a two-pronged approach: accelerating its enterprise analytics software business while prudently acquiring Bitcoin for long-term shareholder value.

By shoring up its balance sheet, MicroStrategy is doubling down on its conviction that Bitcoin will appreciate substantially in the long run. This strategy is similar to how traditional corporations hold cash, bonds, real estate and other investments to diversify their corporate treasuries. 

Future Outlook

Despite the crypto market downturn in 2022, MicroStrategy remains staunchly convinced in Bitcoin's long-term potential. In the earnings call, Saylor stated:

"We believe Bitcoin is going to go up 10x or 100x in the next 15 years. We think bitcoin is going to remake the digital economy."

Saylor and other company executives believe institutional adoption of bitcoin will accelerate going forward as more firms follow MicroStrategy's lead and allocate Bitcoin on their balance sheets.

The company has so far profited hugely from its early and aggressive accumulation of Bitcoin.

The arrival of spot Bitcoin ETFs in the U.S. in 2024 is also viewed as a milestone that will open the doors to greater institutional investment.