2024

Bitcoin

April

when

Bold

<p>MicroStrategy continues to invest heavily in Bitcoin, despite a net loss of 53 million dollars in the first quarter of 2024. This strategy raises questions about the impact on the Bitcoin market and long-term profitability.</p>
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     <p lang="en" dir="ltr">In April, <a href="https://twitter.com/MicroStrategy?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@MicroStrategy</a> acquired an additional 122 BTC for $7.8 million and now holds 214,400 BTC. Please join us at 5pm ET as we discuss our Q1 2024 financial results and answer questions about the outlook for <a href="https://twitter.com/hashtag/BusinessIntelligence?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#BusinessIntelligence</a> and <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a>. <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$MSTR</a> <a href="https://t.co/h40yyrgEb0" rel="noopener noreferrer nofollow">https://t.co/h40yyrgEb0</a></p>— Michael Saylor <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/26a1.png" alt="⚡" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@saylor) <a href="https://twitter.com/saylor/status/1785037831175630938?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 29, 2024</a>
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<h2 id="h-microstrategy-maintains-its-commitment-to-bitcoin">MicroStrategy maintains its commitment to Bitcoin</h2>
<p>MicroStrategy’s increased interest in Bitcoin investments is well known. It acquired <strong>122 additional Bitcoins in April 2024</strong> for an amount of 7.8 million dollars. This latest acquisition brings MicroStrategy’s total Bitcoin holdings to 214,400 BTC.</p>
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<p>Indeed, these massive Bitcoin acquisitions seem to be bold. However, they come at a time when the company recorded a net loss of 53.1 million dollars. This represents <strong>3.01 dollars per share</strong>.</p>
<p>MicroStrategy’s revenues also fell by 5.5% compared to the first quarter of 2023, reaching 115.2 million dollars. The loss due to depreciation of digital assets amounts to 191.6 million dollars, a consequence of the volatility in the cryptocurrency market.</p>
<h2 id="h-massive-bitcoin-purchases-despite-devaluation">Massive Bitcoin purchases despite devaluation</h2>
<p>Throughout the year of 2024, MicroStrategy has acquired <strong>a total of 25,250 Bitcoins</strong> for an amount of 1.65 billion dollars. This represents an average cost of 65,232 dollars per coin. Despite this <a href="https://www.businesswire.com/news/home/20240429608423/en/MicroStrategy-Announces-First-Quarter-2024-Financial-Results-Now-Holds-214400-BTC" target="_blank" rel="noopener noreferrer nofollow">aggressive accumulation</a>, the value of the company’s digital assets has dropped to 5.07 million dollars.</p>
<p>If MicroStrategy had adopted the new fair value accounting standard for digital assets, its Bitcoin assets would be valued at 15.2 billion dollars.</p>
<h2 id="h-microstrategy-misses-the-s-p-500-and-declares-losses">MicroStrategy misses the S&amp;P 500 and declares losses</h2>
<p>One of the significant impacts of these net losses is that MicroStrategy missed the opportunity for inclusion in the S&amp;P 500, which could have strengthened its credibility and attractiveness to investors.</p>
<p>MicroStrategy’s stock <strong>fell by 3.3%</strong> after the first quarter 2024 earnings announcement. Indeed, the 65% rise in the <a href="https://www.cointribune.com/en/crypto-markets/bitcoin-btc-en/" target="_blank" rel="noopener noreferrer nofollow">price</a> of Bitcoin in the first quarter initially contributed to the stock’s rise. But it has since fallen.</p>
<p>Is this strategy sustainable in the long term? Only time will tell!</p>

Bold investments or recklessness? MicroStrategy continues to bet on Bitcoin

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