MicroStrategy, a company co-founded by Michael Saylor, has reportedly been buying bitcoins every quarter since August 2020.
The company is the largest corporate holder of the major cryptocurrency, owning 140,000 BTC. It accumulated its savings at an average price of $29,803, meaning it now has a small unrealized loss.
Despite the volatile nature of bitcoin and the market crash in 2022, MicroStrategy remains committed to plans to strengthen its BTC position.
The firm became better known when it bought over 21,000 BTC in August 2020 and made a major investment in BTC.
“Our investment in bitcoin is part of our new capital allocation strategy, which aims to maximize long-term value for our shareholders.
This investment reflects our belief that Bitcoin, as the world's most widely adopted cryptocurrency, is a reliable store of value and an attractive investment asset with higher long-term appreciation potential than holding cash," MicroStrategy Executive Chairman said at the time that.
The firm's biggest purchase came at the start of its strategy when it raised over 38,000 BTC in Q3 2020 and then took that amount to over 70,000 BTC by the end of the year.
The organization maintained its pace throughout 2021 and 2022. It bought over 8,200 BTC over the course of last year, increasing its holdings even in the second quarter despite the collapse of LUNA and the FTX Exchange.
The trend changed with the start of 2023 as the crypto market showed some signs of recovery. MicroStrategy acquired an additional 7,500 BTC since the beginning of the year, rounding the total holdings to 140,000 BTC.
The increase in the value of bitcoin over the past few months has allowed MicroStrategy to turn a profit during Q1. It posted net income of $461 million, while software business revenue exceeded estimates. This development is partly due to tax benefits resulting from the firm's BTC holdings.
MSTR stock was worth about $145 on January 1st, while currently, it's playing around $318 (a 120% jump).
