A fresh report indicates that the enterprise business
intelligence (BI) software provider MicroStrategy made an
investment of 8,800 Bitcoin (BTC) during the market downturn in the
cryptocurrency space this year, while the company's stock increased by more
than double since the start of the year.
MicroStrategy made an investment of 8,813 Bitcoin during the
cryptocurrency market plunge and incurred a $1.28 billion loss for 2022. Their
quarterly revenue amounted to $132.6 million, yet they still suffered a net
loss of $250 million, as documented in their financial reports released on
February 2.
The report suggests that MicroStrategy has purchased 132,500
BTC at the time of writing, which is now worth over $200 million. This was at
an average price of $30,137, thus the company spent a total of $3.9 billion on
its Bitcoin purchases.
Andrew Kang, the CFO for the company, commented on the
results by saying:
“We may consider pursuing additional transactions that may take advantage of the volatility in Bitcoin prices, or other market dislocations that are consistent with our long-term Bitcoin strategy. (…) Our corporate strategy and conviction in acquiring, holding, and growing our Bitcoin position for the long term remain unchanged.”
The words of MicroStrategy's CFO Phong Le back in January
2022, of the company's plan to 'buy and hold' despite any market volatility,
have been corroborated by the former CEO Michael Saylor, who revealed that
MicroStrategy had set up its balance sheet to enable it to 'hodl' in the face
of any adversity.
Prices of Stocks Have Increased by a Factor of Two
The stock of MicroStrategy has seen a dramatic rise since
the beginning of the year, with a 101.44% jump in the past month, from $145.02
to the current price of $292.13 according to the data obtained on February 3
from Google Finance by Finbold.
As shown in the one-month stock price chart of MicroStrategy
provided by Google Finance, the fluctuations in the company's stock can be
seen.
By August 2022, Finbold reported that Microstrategy had
managed to outperform 97% of the S&P 500 stocks since they adopted their
Bitcoin approach in 2020. Even though the company's income had decreased in
2022 due to the crypto market decline, they had still achieved this success.
In late December, Saylor outlined the company's plans to launch
applications and solutions driven by the Bitcoin Lightning Network in 2023,
including online content monetization, corporate internal management, and
enterprise marketing. It should be noted that its recent stock price surge is
in line with these ambitions. [pc]
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