Enterprise business intelligence (BI) software vendor MicroStrategy (NASDAQ: MSTR) purchased over 8,800 Bitcoin (BTC) during the massive plunge the cryptocurrency market suffered in 2022, whereas its stock more than doubled since the year’s turn, a new report has shown.
As it happens, MicroStrategy bought 8,813 BTC during the cryptocurrency crash, taking a $1.28 billion impairment loss for 2022, and reporting a revenue of $132.6 million for the year’s fourth quarter but also a net loss of $250 million, according to the company’s financial results published on February 2.
Taking into account the report, the BTC purchased during the dip (at press time worth more than $200 million) adds up to a total of 132,500 BTC bought by the company as of December 31, at the average price of $30,137, which means MicroStrategy spent $3.9 billion on its Bitcoin purchases.
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Commenting on these results, the company’s CFO, Andrew Kang, stated:
“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.”
His words echo that of MicroStrategy’s CFO Phong Le from January 2022, when he described the firm’s strategy to ‘buy and hold’ regardless of the anticipated market volatility, confirmed by its now-former CEO Michael Saylor, who said that MicroStrategy “structured its balance sheet so it could continue to ‘hodl’ through adversity.”
Stock price doubles
Meanwhile, the price of MicroStrategy’s stock improved significantly since the start of the year, as it increased by 101.44% over the past month, growing from $145.02 on January 3, to $292.13 at the time of publication, as per the latest data retrieved by Finbold from Google Finance on February 3.
As Finbold reported in August 2022, Microstrategy had, by that time, outperformed 97% of the S&P 500 stocks since adopting its Bitcoin hodling strategy in 2020, despite the firm’s revenues dwindling in 2022 under the influence of the crypto market meltdown.
It is also important to note that its recent stock price growth follows the company’s plans for the release of applications and solutions powered by the Bitcoin Lightning Network in 2023, in the areas such as online content monetization, internal corporate controls, and enterprise marketing, as outlined by Saylor in late December.
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