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- Microstrategy acquired 122 additional Bitcoins in April, increasing its total holdings to 214,400 BTC.
- Despite a Q1 net loss of $53.1 million, Microstrategy continues to prioritize Bitcoin investments.
- CFO Andrew Kang affirms the 14th consecutive quarter of Bitcoin purchases reflects long-term strategy.
Microstrategy has purchased an additional 122 Bitcoins, valued at approximately $7.8 million. This latest acquisition increases the company’s total Bitcoin holdings to an impressive 214,400 BTC, underscoring its commitment to the cryptocurrency as a long-term investment.
The purchase was announced alongside Microstrategy’s Q1 2024 earnings, which painted a mixed financial picture. The company reported a net loss of $53.1 million for the quarter, primarily driven by a $191.6 million impairment loss on its Bitcoin holdings, as Bitcoin prices fluctuated. Despite the financial setback, subscription services revenue saw a significant increase of 22%, totaling $23.0 million.
Andrew Kang, Microstrategy’s CFO, highlighted that this marks the 14th consecutive quarter that the company has added to its Bitcoin reserves. “Our ongoing Bitcoin acquisitions underscore our belief in Bitcoin’s potential as a long-term store of value,” said Kang. He also pointed to the recent approval of spot bitcoin exchange-traded products as a sign that institutional demand for Bitcoin might see substantial growth.
Despite the current financial challenges, Microstrategy’s strategy appears unwavering. The company remains one of the largest corporate holders of Bitcoin, betting on its future amidst a volatile market. With Bitcoin reaching a high of $73,686.93 this March, its highest level this year, Microstrategy’s decision could be poised to pay off, reflecting a deep-seated belief in the transformative potential of cryptocurrencies.