The American business intelligence company MicroStrategy (MSTR) made another purchase of bitcoins, this time 1045 ones for 23.9 million US dollars.
The details about the purchase were released in a filing by the U.S. Securities and Exchange Commission. As per the filing, the purchase took place between dates March 23, 2023, and April 4, 2023.
The latest purchase has made the company have holdings of 140,000 bitcoin with a total worth of 4 billion US dollars. Just days before, on March 27, the company had disclosed another Bitcoin purchase. It was 161 million US dollars for 6.455 bitcoins during the time of the past five weeks.
Bitcoin purchases by MicroStrategy (MSTR):
Earlier in 2022, MicroStrategy had made huge Bitcoin purchases. The firm had lost bitcoin holdings in the sale operation. But just two after it, MSTR was able to buy it back. Approximately 810 bitcoins were bought by the company for an esteemed amount of 13.6 million in cash.
This is approximately equal to 16,845 US dollars per bitcoin and is inclusive of fees and expenses. The details of these purchases were known to the public through a filing that the Securities and Exchanges Commission of the United States(SEC U.S) made.
The same filing cited that MSTR bought the bitcoin holdings on the 24th of December, 2022.
MicroStrategy has bought more than 8,800 bitcoins during the crypto plunge of 2022. This resulted in costing 1.28 billion US dollars in an impairment loss during the financial year. This was reported by the company itself in its fourth quarter report.
The Q4 report said that MSTR’s expenditure on acquiring bitcoin holdings was more than 3.9 billion US dollars. A total of 132,500 bitcoins were purchased by MicroStrategy for an average price of 30,137 US dollars. The average price per coin was deemed as 30,137 US dollars.
The fourth quarter report also stated the carrying value of the bitcoin holdings that the company has.
It was reported a 1.8 billion US dollars. Hours after the release of the Q4 report, on the same day, in the afternoon, MSTR’s stash was worth 3.16 billion US dollars. Before that, the shares of the company were below 3 percent.
After the afternoon trading the shares accelerated and reached at above 9 percent. The stock also went twice as much as it was before.
Before that in 2020, MSTR made 250 million US dollars in bitcoin investment in the form of a treasury reserve asset. The investment was made stating that the delines of the cash returns.
This was causing the dollar to weaken and also had an impact on many other global macroeconomic factors. The first purchase was made in the month of August 2022. After that company made additional purchases too. It was in September. This purchase was of approximately 130,000 Bitcoins.
And it was acquired for a price of $3.98 billion. And the average purchase price was $30,639 per bitcoin. After this one, the trading reached about 19,200 US dollars.
What Is MicroStrategy?
MicroStrategy is an American company specializing in business intelligence (BI). It was founded 34 years ago in 1989. The company was founded by Michael J. Saylor along with Sanju Bansal and Thomas Spahr. Saylor is currently serving as the Executive Chairman of the company.
The company also provides mobile software services and cloud-based services. The latter provides IT as a service over any dedicated network or internet with payment based on usage and with delivery on demand.
Cloud-based services can be on development platforms or full applications and are provided to servers, storage, and virtual desktops. It can also be software subscriptions or infrastructure services.
The business intelligence software the main product of the company includes improvements to the vendor’s HyperIntelligence capabilities. It also includes an embedded analytics system that uses augmented intelligence and also machine learning technology.
The operating system is MS Windows, Linux, and two other operating systems. The latter ones are not supported now. The ones that don’t offer the support these days are AIX and Solaris.
The license is issued by Trialware. MicroStrategy Mobile was introduced in the year 2010. It is a software platform integrating Analytics capabilities into apps. The supported devices are iPhone, iPad, Android, and BlackBerry. MSTR Mobile also allows easier access and it does not need to reformat the data for various platforms.
Another product is Usher. It is a digital credential product and also serves as an intelligence product. Its function is to secure the digital and physical access of the organizations that are its customers. The traditional physical badges and pins and passwords are replaced with digital badges.