Enterprise business intelligence software provider MicroStrategy recently published its financial results for the fourth quarter of 2022. The report showed that during the recent cryptocurrency market dip, the company purchased 8,813 Bitcoin (BTC), taking a $1.28 billion impairment loss for the year. Despite this, MicroStrategy’s stock has more than doubled since the start of the year and increased by 101.44% over the past month. The total number of BTC purchased by MicroStrategy as of December 31 is 132,500, at an average price of $30,137, resulting in a total spend of $3.9 billion.
In August 2022, MicroStrategy had outperformed 97% of the S&P 500 stocks since adopting its Bitcoin holding strategy in 2020. The recent stock price growth follows the company’s plans to release applications and solutions powered by the Bitcoin Lightning Network in 2023, aimed at areas such as online content monetization, internal corporate controls, and enterprise marketing. Despite the firm’s revenue declining in 2022 due to the crypto market meltdown, MicroStrategy’s Bitcoin strategy has proven successful.
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It is important to note that MicroStrategy reported a revenue of $132.6 million for Q4 2022, but also a net loss of $250 million. Despite this, the company’s Bitcoin purchases, which are now worth over $200 million, have contributed to the growth of its stock price. The future release of applications and solutions using the Bitcoin Lightning Network is also expected to drive further growth for the company.
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