MicroStrategy has been buying Bitcoin every quarter since adopting the BTC strategy.
MicroStrategy, a business data analytics firm co-founded by Michael Saylor, has been buying bitcoin every quarter since August 2020.
It is also the leading cryptocurrency holder by largest market capitalization with 140,000 BTC. They accumulated their shares at an average price of $29,803, which means they are currently suffering small unrealized losses.
Add more bitcoins every quarter
Despite BTC’s volatility and 2022 bear market disrupting the crypto industry, MicroStrategy appears determined to continue strengthening its BTC position.
The company jumped on this trend in August 2020, purchasing over 21,000 BTC and adopting a leading digital asset-centric strategy.
“Our investment in Bitcoin is part of our new capital allocation strategy to maximize long-term value for our shareholders.”
This investment reflects our belief that Bitcoin, the world’s most widely used cryptocurrency, is a trusted store of value and an attractive investment asset with potential. Has more long-term upside potential than holding cash,” MicroStrategy executive chairman Michael Saylor told TIME.
The company continued to hold on to Saylor’s views and added assets over the ensuing years. In fact, they have been buying a certain amount of Bitcoin every quarter until now. The company’s most significant purchases occurred at the start of the strategy, with the company accumulating over 38,000 BTC in the third quarter of 2020, before increasing to over 70,000 BTC by the end of the year.
MicroStrategy BTC Buy | Source: DropsTab
The organization has maintained its buying pace throughout 2021, spending significant amounts each quarter. With Bitcoin hitting record highs that year, the company’s investments turned out to be very successful, and at one point made an unrealized profit of nearly $3.5 billion in November 2021.
While the crypto winter of 2022 prevented many entities from buying BTC, that did not happen with MicroStrategy. They bought over 8,200 BTC throughout last year and even increased their holdings in Q2 (when LUNA/UST crashed) and Q4 (when FTX crashed). MicroStrategy suffered a huge unrealized loss of $1.8 billion at the end of 2022 due to the sharp drop in BTC prices.
This trend changed in early 2023 as the cryptocurrency market showed some signs of recovery. Last month, the company’s massive BTC vault turned green for the first time since June 2022 after the flagship digital asset soared above $30,000.
Since the beginning of the year, MicroStrategy has purchased an additional 7,500 BTC, bringing its total holdings to 140,000 BTC.
good start to the year
Bitcoin’s appreciation over the past few months has benefited MicroStrategy financially, enabling it to report a profit in the first quarter. The company reported net income of $461 million, while its software business topped expectations. This development is partly due to the tax benefits offered by companies that hold BTC.
The company also took advantage of the bitcoin bull market to repay a $205 million loan to bankrupt Silvergate Bank at a 22% discount.
As a public company, MicroStrategy’s stock rose in the first few months of the year. MSTR shares were worth around $145 on January 1st, and they’re currently hovering around $318 (up 120%).
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According to Crypto Potato