Business intelligence software company MicroStrategy announced its fourth quarter 2023 financial results yesterday, reporting a net profit despite a decline in revenues. Total revenues for Q4 were down 6.1% year-over-year to $124.5 million.
However, the company posted a net income of $89.1 million, a stark contrast to the $249.7 million net loss in Q4 2022.
A key factor in MicroStrategy’s profitability was its large bitcoin holdings, now totaling approximately 189,150 bitcoins acquired at an average price of $31,168 each. While the carrying value of the bitcoins on MicroStrategy’s balance sheet took impairment losses of $39.2 million in Q4, this was far lower than the $197.6 million impairment loss a year prior. With bitcoin’s market price recovering to $42,531 at year’s end, the company’s bitcoin holdings had a market value of $8 billion.
During Q4, MicroStrategy raised $1.2 billion in cash by issuing new shares, using the funds to increase its bitcoin holdings by 31,755 bitcoins. The company says its bitcoin strategy and transition to cloud services provide unique opportunities for delivering shareholder value going forward.
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