TYSONS CORNER, Va., Tuesday, February 7, 2024- Business intelligence firm MicroStrategy surprised analysts by reporting a net income of $89.1 million for the fourth quarter of 2023. 1
MicroStrategy is the largest corporate holder of Bitcoin and the largest independent publicly traded business intelligence company.
MicroStrategy has continued its aggressive strategy of acquiring Bitcoin during the fourth quarter, adding 31,755 Bitcoins to its holdings at a total cost of $1.25 billion.
This translates to an average purchase price of $39,411 per bitcoin, significantly above the market price at the time of acquisition.
As of February 5, 2024, MicroStrategy’s total Bitcoin holdings have reached 190,000, representing a cumulative investment of $5.93 billion and an average acquisition cost of $31,224 per Bitcoin.
Despite a 6% year-over-year decline in total revenues, which reached $124.5 million in Q4, the company posted positive growth in its subscription services segment.
Subscription revenues climbed to $21.5 million, reflecting a 23% increase compared to the same period last year.
The full text of the Media Release can be seen here.
However, the company’s heavy reliance on Bitcoin remains a point of concern for some analysts.
While this strategy aligns with their bullish belief in Bitcoin’s long-term potential, the cryptocurrency’s volatile nature resulted in $197.8 million in digital asset impairment losses during Q4.
MicroStrategy became the first publicly traded company to adopt Bitcoin as a treasury asset allocation strategy in 2020. As of February 5, 2024, only Tesla and a handful of crypto-focused firms joined MicroStrategy in holding Bitcoin on their balance sheets.2
- Microstrategy: https://www.microstrategy.com/press/microstrategy-announces-fourth-quarter-2023-financial-results-now-holds-190000-btc_02-06-2024[↩]
- bnnbloomberg: https://www.bnnbloomberg.ca/microstrategy-posts-profit-on-benefit-tied-to-bitcoin-holdings-1.2031632[↩]
