1
Bitcoin (₿) is a cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009, when its implementation was released as open-source software. Jorge Franganillo/flickr

KEY POINTS

  • Saylor revealed that MicroStrategy bough 122 more BTC this month
  • MicroStrategy lodged digital impairment losses of $191.6 million in Q1 2024
  • Saylor remains optimistic and even shared how MSTR is up over 930% since it adopted a BTC strategy

MicroStrategy (MSTR), the world's largest known corporate holder of Bitcoin, isn't done acquiring more of the digital asset. The tech firm obtained more Bitcoin this month despite the asset's apparent stagnant state since the halving, highlighting how a BTC price dip can be an opportunity for others.

Michael Saylor, MicroStrategy's founder and executive chairman, announced that the company acquired 122 more Bitcoin for $7.8 million, bringing its total holdings to 214,400 as of April 26, 2024.

"We acquired 25,250 additional Bitcoins since the end of the fourth quarter, our 14th consecutive quarter of adding more Bitcoin to our balance sheet, we believe that the combination of our operating structure, Bitcoin strategy, and focus on technology innovation provides a unique opportunity for value creation for our shareholders," said Andrew Kang, MicroStrategy's chief financial officer, in a statement.

The news was announced during the business software firm's first quarter 2024 earnings report, which revealed that MicroStrategy saw a net loss of $53.1 million in Q1 2024 due to digital asset impairment losses amounting to $191.6 million in the said period.

In comparison, the company posted digital asset impairment losses of $18.9 million in the first quarter of 2023, marking a significant difference from the Q1 2024 results, and highlighting the volatility of the cryptocurrency market that MicroStrategy jumped into.

Still, the company appears hell-bent on maintaining its Bitcoin strategy. For the entire quarter, the maximalist firm acquired 25,250 more Bitcoin from the end of Q4 2023, seemingly in a bid to retain its position as the top-known corporate BTC holder in the world.

Crypto users and BTC enthusiasts made a spectacle out of MicroStrategy's latest Bitcoin buy. "You panic sold, he panic bought," said one crypto user on X (formerly Twitter), who claims to be a Bitcoin holder since 2016.

Another user urged crypto owners to "take note" of MicroStrategy's buying pattern, and one pointed out how the Virginia-based company, which announced earlier this year that it was transitioning into a "Bitcoin development company," was displaying some "serious conviction" regarding its business linked to the world's first decentralized digital asset.

Despite the digital asset impairment hit in the first quarter, Saylor remains enthusiastic about MicroStrategy's future through its Bitcoin strategy. A few hours after announcing his company's net losses, the tech mogul urged investors to adopt their own BTC strategy.

He posted a photo of how MicroStrategy's stock has spiked 937% since it adopted a Bitcoin strategy four years ago. The stock's price outperformed big tech giants Google (132%), Microsoft (95%), Meta (69%) and Amazon (14%), as per data from FactSet.

Bitcoin has been struggling to break past the $63,000 mark since the halving on April 20, and as of early Tuesday, was trading between $62,500 and $62,800.

Read more