MicroStrategy has published its financial performance for the last quarter of 2023. According to the official report, MicroStrategy continued acquiring Bitcoin tokens, with the total number of tokens standing at 190,000. The average cost comes to $31,224 for every BTC as of February 5, 2024. The cost of acquisition was higher since the third quarter of the previous year, averaging $39,411 per piece.
All key representatives of MicroStrategy are confident about accumulating tokens.
Phong Le, for one, has said that they have strategically raised capital to increase their Bitcoin holdings significantly. The president and CEO of the company have also said that they will continue to innovate in 2023 with a core focus on MicroStrategy AI, their first market-based AI-based BI tool.
Andrew Kang, the CFO of MicroStrategy, has acknowledged that the company has acquired 31,755 additional tokens to mark the largest quarterly holdings of Bitcoin in the previous three years, further stating that it was the 13th consecutive quarter when they added more Bitcoin to the books.
The move to accumulate tokens comes as revenue and gross profit experience a slight dip. Revenue for Q4 has gone down by 6.1%, dancing around $124.5 million compared to the fourth quarter of the previous year, that is, 2022. There was also a dip in product license and subscription service revenue by 11.4%, reaching $39.9 million. Again, the comparison is with Q4 of 2022.
Gross profit decreased from $105.8 million to $96.3 million in 2023-Q4. It reflects a gross margin of 77.3%, which is below what it was in the fourth quarter of 2022, 79.8%.
Operating expenses fell to $139 million, a drop of 53.6%. However, there is an increase in cash and cash equivalents. It has surged to $46.8 million as of December 31, 2023, from $43.8 million. Losses from operations have come down to $42.8 million from $193.7 million. Net income, on a diluted basis, stood at $89.1 million, translating to $4.96 for every share.
MicroStrategy sold 2,266,503 shares of its Class A common stock pursuant during the time window of three months that ended in December 2023. Aggregate net proceeds came to $ billion.
The BTC holding of MicroStrategy continues to remain at the center of the stage. A total of 190,000 Bitcoin tokens have been bagged for an average of $39,411. The current valuation is $42,879.97, with a rise of 0.34% in the last 24 hours. There is a positive margin that MicroStrategy is looking at, which is expected to widen as Bitcoin Halving comes closer and actually happens in the middle of the year.
There is no word if MicroStrategy will continue to accumulate BTC. By the looks of it, it is highly unlikely that the company will cease its activity of purchasing Bitcoin tokens.