MicroStrategy Bought 122 BTC in April, Now Holds 214,400 BTC

MicroStrategy, under the leadership of Michael Saylor, has been actively investing in Bitcoin. The company has recently acquired 122 BTC in April, equivalent to around $7.8 million at purchase time, according to MicroStrategy’s Q1/2024 financial report.

Even with a smaller purchase, MicroStrategy’s latest Bitcoin buy-in signals its confidence in the cryptocurrency’s potential, particularly during this market downturn. Bitcoin keep going up. With a huge rally in early 2024, BTC looks like one of the best assets in the world.

The latest acquisition brings MicroStrategy’s total BTC holdings to 214,400 BTC, worth over $12 billion (with Bitcoin currently priced at $60,000), with an average purchase price of $35,372 per coin. The company’s holdings account for over 1% of total BTC supply in circulation.

A Big BTC HODLer

MicroStrategy has bought more BTC since the end of Q4/2023. The new purchase marked the company’s 14th consecutive quarter of adding more bitcoin to their balance sheet.

Andrew Kang, Chief Financial Officer of MicroStrategy, said the consistent addition of Bitcoin to their balance sheet creates a unique opportunity for shareholder value creation. Plus, he noted that Bitcoin has shown strong performance year-to-date, mainly driven by the approval of spot Bitcoin exchange-traded funds (ETFs) in the US.

Despite being a more modest acquisition compared to MicroStrategy’s past investments, this latest purchase still contributes to their growing reserves.

In addition to the BTC purchase, MicroStrategy reported a 5% decrease in year-over-year revenue. Despite this setback, the company remains optimistic about its financial strategy and the potential of its Bitcoin investments.

Andrew Kang, Chief Financial Officer of MicroStrategy, said the company successfully raised over $1.5 billion in the first quarter through convertible debt offerings.

In March, MicroStrategy announced its plans to raise an additional $500 million in convertible bonds, with the proceeds used to buy more Bitcoin (BTC). These bonds mature in March 2031 and pay interest semi-annually. Investors have the option to convert them into shares of MicroStrategy stock.

The company issued convertible bonds totaling $800 million in the same month (originally $600 million). In addition, MicroStrategy bought another 12,000 Bitcoin worth around $821.7 million.

Michael Saylor Has No Plan to Sell BTC

MicroStrategy is among big companies that have kept up with the ups and downs of Bitcoin. Many wonder if the company plans to sell part of its holdings anytime soon. However, in a February interview with Bloomberg, Michael Saylor, co-founder of MicroStrategy, said he has no plan to sell Bitcoin.

Saylor claimed that the flagship cryptocurrency is “technically superior” to gold, the S&P 500 and real estate, even though each of these assets has a market capitalization much larger than the $1 trillion BTC value.

He also added that with the approval of spot Bitcoin ETFs, traditional financial institutions now have a gateway to invest in the digital economy, specifically the Bitcoin ecosystem. Bitcoin’s technical superiority strengthens this case, “there’s just no reason to sell the winner to buy the losers,” Saylor said.

Saylor’s firm became the first publicly traded company to announce a Bitcoin purchase in August 2020. Since then, the company has been a steady buyer, accumulating Bitcoin (BTC) for their portfolio.

MicroStrategy kicked off 2024 with an initial purchase of 850 BTC, valued at $37.2 million. While their past Bitcoin accumulation strategy initially faced unrealized losses, the company has recently seen a turnaround.

Despite Bitcoin’s recent price slide, dropping 18% from its all-time high of $73,777 in March, MicroStrategy’s Bitcoin holdings still records unrealized gains of $6.3 billion.

Bitcoin (BTC) is heading to close April with bearish momentum. It will likely end a streak of 7 consecutive months of growth, a trend that has been ongoing since September 2023. At press time, BTC is trading at around $57,900, down 4% in the last 24 hours. It will rise again – just watch!