MicroStrategy, one of the biggest crypto whales in the market, expanded its crypto portfolio again in the middle of September and December. The company took the falling prices with the FTX collapse as an opportunity.
MicroStrategy expands its crypto portfolio
MicroStrategy’s earnings reports show that 3,204 Bitcoins were purchased between September and December at an average price of $17,600, bringing its total portfolio to 132,500 Bitcoins. MicroStrategy, one of the leading companies in institutional adoption of Bitcoin, has spent more than $2 billion on BTC to date. Despite the 2022 bear market conditions, the company preferred to buy some more in the 4th quarter of the year.
The company also posted a profit of $105 million for the quarter, but now they owe more than growth. MicroStrategy has 2.4 billion cash, Bitcoin, and other assets, but has a spending close of 2.8 billion, giving it a deficit of $383 million.
Please join the @MicroStrategy management team at 5pm ET as we discuss our Q4 2022 $MSTR financial results and answer questions about our business and outlook for #BusinessIntelligence and #Bitcoin.https://t.co/1rrF11ef2Z
— Michael Saylor⚡️ (@saylor) February 2, 2023
MicroStrategy 2022 fourth quarter financial statement
The details of the Q4 report quoted by former CEO Michael Saylor are as follows:
As of December 31, 2022, MicroStrategy’s cryptocurrencies (consisting of approximately 132,500 Bitcoins) were worth $1,840 billion. There is a loss of $2.153 billion since the acquisition. Purchases averaged $13,887. The original cost basis and market capitalization of MicroStrategy’s Bitcoin were $3,993 billion and $2,194 billion, respectively; this reflects the average cost per bitcoin of about $30,137 and the market price per bitcoin of $16,556.32, respectively.
MicroStrategy sold approximately 704 Bitcoins for cash income of $11.8 million excluding fees and expenses in the fourth quarter of 2022, and earned $0.9 million from the sale in the fourth quarter of 2022.
How about Bitcoin?
Data from TradingView shows that BTC price has maintained a tight range since Feb. US macroeconomic data provided moderate volatility for the cryptocurrency market, but there was no overall trend change as investors took their time towards the weekend. However, opinions on the long-term outlook have been mixed, with some suggesting that there is little reason to be confident that Bitcoin’s rally will continue. cryptocoin.comWe have included current price predictions from 5 analysts in this article.
Meanwhile, popular trader Crypto Tony summed up the current situation in his latest analysis, saying, “We are already seeing $50,000 calls in Bitcoin and we have yet to complete a market structure change to higher and higher.” Still, another analyst, Credible Crypto, was more optimistic, doubling down on a theory comparing current BTC price action to late 2020 price action, just after Bitcoin passed the ATH level in 2017. According to Credible, “BTC could continue to rise while most are waiting for a pullback.”
