MicroStrategy comes back for more Bitcoin—MSTR drops 5.40%

Michael Saylor Microstrategy MSTR bitcoin
image from medium.com

Key Takeaways:

  • Business intelligence company MicroStrategy adds another $25 million worth of Bitcoin to its treasury.
  • The strategy of gobbling up Bitcoin did not end well for the company in Q4 2021.

YEREVAN (CoinChapter.com) – MicroStrategy’s chief executive officer, Michael Saylor, announced Tuesday that they had purchased more Bitcoin (BTC), a move that boosted their net BTC reserves to over 125,051 coins, purchased at an average rate of $30,200 per token.

MicroStrategy and Bitcoin

In detail, MicroStrategy and its CEO have a history of purchasing Bitcoin while it’s bottoming out. The last time the company ‘bought the dip’ was in late December, wherein it had acquired 1,914 BTC.

Before that, MicroStrategy had purchased $414 million worth of Bitcoin in November, when one BTC coin was worth around $57,000. As of Feb. 1, the alpha crypto price stood at $38,439 in the European session. MicroStrategy also grabbed a spoon in mid-September, ending Q3 with a bang and buying up 5,050 BTC for over $240 million.

Also read: Michael Saylor's MicroStrategy bought the Bitcoin dip at a discount.

As of Feb. 2, the business intelligence company held $3.78 billion worth of Bitcoin.

However, the BTC purchasing pace in Q4 didn’t do the company’s stock (MSTR) any favors, as MicroStrategy reported a net loss of $90 million or $8.43 a share in the fourth quarter missing consensus estimates for a profit of 89 cents a share.

MSTR drops after the announcement

MicroStrategy stock declined by 5.80% after the Twitter announcement Tuesday. As of publication, MSTR is worth $367, after briefly dropping to $350. Since early December, the company has counted its losses when Bitcoin fell into the bear market.

MicroStrategy stock price chart. Source: MSTR on TradingView.com
MicroStrategy stock price chart. Source: MSTR on TradingView.com

MSTR traded at $732 on Dec. 1 and has lost 49.80% since. Moreover, the company’s Q4 earnings were highlighted by higher impairment losses on the company’s digital asset holdings.

Q4 operating expenses were $247.98 million, up from just $110.14 million in Q4 2020.

However, the volatility on the crypto market left MicroStrategy susceptible to losses due to its increasing crypto exposure. Despite the dropping MSTR price, Saylor commented that MicroStrategy would continue its Bitcoin acquisition.

We also significantly expanded our bitcoin holdings in the quarter, adding over 10,300 bitcoins to our holdings after successfully raising capital in the quarter through our at-the-market equity offering.

Today, MicroStrategy is the world’s largest publicly traded corporate owner of bitcoin with over 125,000 bitcoins. We will continue to evaluate opportunities to raise additional capital to execute on our bitcoin acquisition strategy.

said the CEO, commenting on the Q4 report.
Also read: Bitcoin targets $38k as Arizona Senator introduces bill to make BTC legal tender.

Saylor keeps coming back for more Bitcoin despite the crypto market volatility. However, BTC price swings left MSTR stock at a 49.8% loss. Moreover, MSTR lost an additional 5.8% after the announcement, market with a vertical line on the chart above.

MicroStrategy, MicroStrategy comes back for more Bitcoin—MSTR drops 5.40%

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