Yesterday MicroStrategy’s founder and president, Michael Saylor, announced the news that the company has purchased more Bitcoin.
MicroStrategy has now accustomed us to this kind of news, because it continues to buy BTC without practically ever selling them, at least for now.
Summary
Crypto news: MicroStrategy’s Bitcoin purchases
The purchases revealed yesterday concern the month of April.
Altogether during the month, MicroStrategy has purchased another 122 Bitcoins investing 7.8 million dollars, at an average price just below $64,000.
Thanks to these purchases, the company now holds 214,400 BTC, bought over the last four years at an average price of $35,180.
Since the current market value of a BTC is around $63,000, the potential unrealized gain of this investment at the moment is almost 80%.
MicroStrategy’s strategy
The strategy with which MicroStrategy has approached this type of investment is not yet clear.
Indeed, apparently it seems trivial: it uses all the dollars it has, and can dispose of thanks to the issuance of bond loans, to buy Bitcoin.
In theory, the company claims not to have any intention of selling BTC, although it is believed that sooner or later it may be forced to sell some in order to at least repay the interest on the loans it obtains.
Actually, so far it is doing nothing but obtaining more and more loans by issuing new bonds that allow it, among other things, to also collect the dollars with which it repays the coupons on the bonds it issues.
Until today, in four years, she has been forced to sell Bitcoin only in rare cases, and when she did it was only very small amounts. In other words, she is continuing to accumulate BTC, using Bitcoin as a reserve currency, and spending all the dollars she owns either to repay creditors or to buy more BTC.
Note that MicroStrategy is buying Bitcoin without worrying too much about the price.
Indeed, during 2024, it acquired a total of 25,250 Bitcoins, investing an average of $65,232 for each of those purchased BTC. In other words, the company buys Bitcoin even if the price rises.
MicroStrategy: Revenues according to the latest Bitcoin news
Yesterday the company also published the earnings prospectus for the first quarter of 2024. After all, being a publicly traded company, it is obligated to make its economic and financial performance public.
MicroStrategy declares that during the first quarter of the year its revenues, coming from subscription services, have grown again at double-digit growth rates. However, despite being equal to 115.2 million dollars, they were found to be 5.5% lower than those of the first quarter of last year.
Of these, 62.7 million came from product support, while 35.9 million came from product licenses and subscription services. Other services generated an additional 16.7 million dollars in revenue.
The gross profit for the first quarter of 2024 was $85.2 million, with a gross margin of 74.0%, slightly down from the $94.0 million in the first quarter of 2023.
Furthermore, it has raised over 1.5 billion dollars to carry out its financial strategy, thanks to which it has acquired another 25,250 BTC.
They claim that the combination of their operational structure, their strategy on Bitcoin, and their focus on technological innovation, offers an opportunity for creating value for their shareholders.
The detention of BTC
Today MicroStrategy is the single private company in the world that holds the most Bitcoin.
Actually, his 214,400 BTC are even more than the 213,000 BTC held by the US government after various seizures carried out over the years by the Department of Justice.
They are even more than those held by Fidelity’s ETF, FBTC, while they are less than those held by BlackRock’s ETF (IBIT) which has 274,000, and by Grayscale’s (GBTC) which has 298,000.
For example, those still held by Mt. Gox, and which should be returned shortly to the creditors of the exchange that failed ten years ago, are 141,000.
Since ETFs do not have a single owner, and since Satoshi Nakamoto has been completely missing for over 13 years, MicroStrategy is now the single largest holder of BTC in the world.
MicroStrategy stocks
It should be noted, however, that, in turn, MicroStrategy is also a company that has several owners.
Indeed, it is a so-called public company, that is a company whose majority of shares do not belong to a single owner.
Almost 62% of its shares are on the market, in the stock exchange, and another 37% belongs to institutional investors.
The largest single shareholder is Vanguard, which directly or indirectly controls just over 15% of the entire shareholding.
Since the beginning of the year, the price of MSTR shares listed on the Nasdaq has risen from about $700 to almost $1,300, although in March they reached a peak of almost $2,000.
It is worth noting that in 2021, at the peak of absolute expansion of the crypto markets, the price of MSTR shares barely exceeded $1,300, so the current values are absolutely in line with those. In fact, the peak in March occurred much higher than that of 2021, when the company held much fewer BTC.
Actually, the absolute maximum was recorded in 2000 during the speculative dot-com bubble, when they even exceeded $3,300, but the following year they had already dropped below $200. So excluding that bubble from almost 25 years ago, they are practically at all-time highs.
