MicroStrategy's Q4 Report Drags Bitcoin Down

MicroStrategy’s Q4 Report Drags Bitcoin Down

On Thursday, MicroStrategy, a business intelligence firm, announced its eighth straight quarter of losses but remains committed to keeping Bitcoin on its balance sheet.

The value of Bitcoin dropped to $23,439 after the publication of the Q4 financial results. Despite this, shares of MicroStrategy increased by nearly 10% to $300 on Thursday, although it traded below $280 in pre-market hours.

MicroStrategy’s Bitcoin Holdings

As of December 31, 2022, the initial cost and present market value of MicroStrategy’s bitcoin holdings were $3.993 billion and $2.194 billion, respectively. The average cost per bitcoin is around $30,137, while the current market price per bitcoin is $16,556.32.

During the recent quarter, the company engaged in a unique transaction, selling 704 BTC for the first time to offset a tax loss of $34 million. Despite the sale, the company expanded its Bitcoin portfolio by acquiring an additional 2,500 BTC.

Investors’ Confidence and Recent Market Trends

Investors are bullish about MicroStrategy’s prospects in 2023, as its stock price has soared above $300 within a year, with a 100% increase in just a month, following the rise of Bitcoin above $24,000. However, despite this, MSTR’s current trading price has dipped to $280, down by more than 4% in the pre-market hours.

Similarly, Bitcoin has experienced a price drop, falling to a low of $23,439 after reaching a high of $24,091. Currently, The value of Bitcoin is currently at $23,526 but has decreased by 1% in the last day. Despite this dip, the price remains relatively stable.