MicroStrategy Expanded Its Bitcoin Holdings for 11 Straight Quarters

MicroStrategy – the business intelligence firm co-founded by Michael Saylor – has been acquiring bitcoin every quarter since August 2020.

The organization is the largest corporate holder of the leading cryptocurrency, possessing 140,000 BTC. It accumulated this amount at an average price of $29,803, indicating that it currently faces a slight unrealized loss.

Increasing BTC Holdings Each Quarter

In spite of the unpredictable nature of bitcoin and the 2022 bear market that impacted the cryptocurrency sector, MicroStrategy appears committed to further enhancing its BTC holdings.

The company entered the market in August 2020 by acquiring over 21,000 BTC and adopting a strategy centered around the premier digital asset.

“Our investment in bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders.

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,” stated MicroStrategy’s Executive Chairman – Michael Saylor – at that time.

The firm remained true to Saylor’s statements and continued to augment its holdings in the subsequent years. In fact, it has acquired varying amounts of BTC each quarter up to the present. The company’s most significant purchases occurred at the onset of its strategy, when it amassed over 38,000 BTC in Q3 2020, ultimately increasing that total to more than 70,000 BTC by year’s end.

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MicroStrategy’s BTC Purchases, Source: DropsTab

The organization maintained its momentum throughout all of 2021, investing substantial amounts each quarter. Thanks to bitcoin’s price peaks during that year, the firm’s investment proved highly lucrative, and at one point in November 2021, it reported nearly $3.5 billion in unrealized gains.

While the crypto winter in 2022 halted the bitcoin acquisitions of many entities, MicroStrategy continued its purchasing activity. It acquired over 8,200 BTC throughout the previous year, increasing its holdings even during the second quarter (which experienced the LUNA/UST crash) and Q4 (when the FTX collapse occurred). Due to the decline in bitcoin’s price, MicroStrategy found itself with an unrealized loss of approximately $1.8 billion by the end of 2022.

The situation shifted with the onset of 2023 as the crypto market began to show signs of recovery. Last month, the company’s BTC investment turned profitable for the first time since June 2022 after the leading digital asset surged above $30K.

MicroStrategy acquired an additional 7,500 BTC since the start of the year, bringing its total holdings to 140,000 BTC.

The Positive Start of the Year

The rise in bitcoin’s value over the past few months has positively impacted MicroStrategy, enabling it to report a profit during Q1. It recorded a net income of $461 million, while the software business revenue surpassed expectations. This development is partly attributed to tax advantages stemming from the firm’s BTC holdings.

The company also utilized bitcoin’s price increase to repay its $205 million loan to the defunct Silvergate Bank at a 22% discount.

MicroStrategy, which is a publicly-traded company, experienced an increase in its shares during the early months of the year. MSTR stocks were valued at approximately $145 on January 1, while they currently hover around $318 (a 120% increase).

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