These 190,000 Bitcoins were purchased by the software company for a total price of almost $6 billion.
MicroStrategy has been steadily accumulating Bitcoin since 2020.
(Shutterstock)
Posted February 6, 2024 at 5:28 pm EST.
Software company MicroStrategy, the largest corporate holder of Bitcoin, acquired 31,775 Bitcoins in the fourth quarter of 2023 at an average price of $39,411 per coin, bringing its total holdings to 190,000 Bitcoins, the company said announced on Tuesday.
These 190,000 Bitcoins were acquired for a total price of $5.93 billion, which is an average price of $31,224 per Bitcoin. At the end of December, they were worth a total of $8.05 billion and an average of $42,531 per coin.
Read more: Should you sell MicroStrategy now that spot Bitcoin ETFs are available?
MicroStrategy also recorded a $39.2 million impairment on its Bitcoin holdings in the fourth quarter, reflecting a decline in the value of some of its Bitcoins in the quarter. A new accounting rule allows companies to recognize unrealized gains and losses on their digital assets. However, companies have until 2025 to implement the change and MicroStrategy has not done so yet.
The company began purchasing Bitcoin for its corporate treasury in August 2020 and has continually increased its holdings since then, typically funding its purchases through offerings of its shares in the market.
MicroStrategy said its fourth-quarter Bitcoin purchases were the largest quarterly increase in Bitcoin holdings in the past three years and the 13th consecutive quarter in which more Bitcoin was added to the balance sheet.
MicroStrategy stock has performed extremely well in recent years, but is down about 21% so far in 2024, possibly because the launch of spot Bitcoin ETFs in early January has reduced the appeal of investing in MicroStrategy as a proxy for Bitcoin .
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.