Sunday, March 26, 2023

Microstrategy Stock Skyrockets By 100% In 2023 After Buying 8,800 BTC During The 2022 Crash

Published:

According to a recent report, enterprise business intelligence software company MicroStrategy made a bold move during the 2022 cryptocurrency market crash.

Despite the market downturn, the company purchased over 8,800 Bitcoin (BTC) for a total of $1.28 billion, resulting in a net loss of $250 million for the year. However, despite this loss, the company’s stock has more than doubled since the start of the year.

As of December 31, MicroStrategy has acquired a total of 132,500 BTC at an average price of $30,137. This means that the company has invested a staggering $3.9 billion in the cryptocurrency. And with the recent market rebound, the 8,813 BTC purchased during the dip is now worth over $200 million.

The company’s Q4 financial results, published on February 2, show a revenue of $132.6 million despite the impairment loss suffered due to the Bitcoin purchases.

MicroStrategy’s daring investment in Bitcoin during a market crash showcases their confidence in the long-term potential of the cryptocurrency.

The company’s CFO, Andrew Kang, commented on the results, saying:

“At our company, we’re always exploring new opportunities to make the most of the ups and downs in the Bitcoin market. We aim to acquire, keep, and build our Bitcoin investments for the long haul.”

This mindset is shared by MicroStrategy’s Chief Financial Officer, Phong Le, who spoke about the firm’s strategy to hold onto Bitcoin even during market turbulence.

This sentiment was echoed by former CEO Michael Saylor, who stated that the company had put together a strong financial foundation to weather any challenges while maintaining their commitment to ‘hodl’ onto their Bitcoin investments.

Stock Price Doubled

MicroStrategy’s stock price has seen a significant boost in recent months, skyrocketing from $145.02 on January 3 to an impressive $292.13 as of February 3. This remarkable growth of 101.44% in just one month is a testament to the company’s successful adoption of a Bitcoin holding strategy back in 2020.

Mstr 1M Chart
Microstrategy 1m chart | source: tradingview

Despite the crypto market slowdown affecting MicroStrategy’s revenues in 2022, the company still outperforms 97% of the S&P 500 stocks.

Exciting things are on the horizon for MicroStrategy. In the coming year, 2023, the company is poised to unleash a wave of new, cutting-edge products and services, all powered by the Bitcoin Lightning Network.

As CEO Michael Saylor mentioned in December, these advancements will revolutionize industries such as online content monetization, internal corporate controls, and enterprise marketing. It’s no wonder the stock price has been soaring in anticipation of these upcoming advancements.

Also Read: Debate On Stablecoin Backing Reignited By Cardano Djed Depegging

Emily Carter
Emily Carter
I'm Emily Carter, a content writer focusing on blockchain and crypto news. I stay informed on the latest trends and developments in this fast-changing field and deliver clear, concise news to my readers. With a journalism background and English degree, I write high-quality, informative, and engaging news articles.

Related Articles

Recent Articles