MicroStrategy doubles down on Bitcoin, holding 190,000 BTC with unrealized profits reaching $2.26 billion

The publicly traded company MicroStrategy, whose core business is holding Bitcoin, has released its fourth-quarter financial report. MicroStrategy has once again increased its Bitcoin holdings, currently owning 190,000 bitcoins on its balance sheet at an average cost of $31,224 per bitcoin. With the current price of Bitcoin at $43,115, the unrealized profit amounts to a staggering $2.26 billion.

MicroStrategy Again Buys Bitcoin

MicroStrategy has been increasing its Bitcoin holdings in the following ways during the fourth quarter of last year:

Fourth Quarter of 2023

• Issued new shares using proceeds from capital market activities to purchase 30,555 bitcoins at a cost of $1.2 billion
• Purchased 350 bitcoins with excess cash totaling $13.4 million

First Quarter of 2024

• Purchased 850 bitcoins with excess cash totaling $37.2 million

Currently, MicroStrategy holds 190,000 bitcoins on its balance sheet, with a total cost of $5.93 billion and an average unit cost of $31,224 per bitcoin.

MicroStrategy Continues to Issue Stocks to Buy Bitcoin

In the fourth quarter of 2023, MicroStrategy issued and sold 2,266,503 shares of Class A common stock as per its previously established stock issuance plan, raising $1.2 billion in funds to purchase 30,555 bitcoins.

According to its plan, as of December 31, 2023, there are still approximately $137.8 million of Class A common stock available for issuance and sale by the company.

As shown in the table below, since 2021, MicroStrategy has continuously raised funds to buy bitcoin by issuing Class A common stock. Compared to 2020, the number of Class A common shares has almost doubled from 7.651 million shares to 14.9 million shares, an increase of nearly 74% in total outstanding shares of Class A and B common stock.

Note: Companies usually issue A/B common stock for corporate governance purposes, known as dual-class shares. Ordinary investors typically hold Class A common stock with one vote per share, while founders or senior executives hold Class B common stock with multiple votes per share, granting them stronger voting rights.

MicroStrategy Stock Price Corrects with Bitcoin Pullback

MicroStrategy's stock price dropped by over 2% after the financial report was released. Previously benefiting from Bitcoin's surge, its stock price had once surpassed $700. However, this year, as Bitcoin underwent a pullback, MicroStrategy's stock price also declined, currently down by 28% year-to-date.