MicroStrategy Incorporated, a prominent business intelligence company and the largest corporate holder of bitcoin, unveiled its financial results for the fourth quarter of 2023, showcasing remarkable achievements despite market challenges.
In a statement, MicroStrategy’s President and Chief Executive Officer, Phong Le, expressed satisfaction with the company’s performance, emphasizing strategic capital raises and significant bitcoin acquisitions as key highlights of the year.
During the fourth quarter, MicroStrategy added 31,755 bitcoins to its holdings, marking the largest quarterly increase in the last three years and bringing the total bitcoin holdings to an impressive 190,000, valued at approximately $31,224 per bitcoin.
Chief Financial Officer Andrew Kang highlighted the positive impact of the increase in bitcoin prices during the quarter, which contributed to the company’s financial gains and reinforced its strategy of leveraging strategic capital markets activities to accumulate more bitcoin.
Despite a slight decline in total revenues, MicroStrategy maintained a solid gross profit of $96.3 million, representing a gross margin of 77.3%, demonstrating the company’s resilience in the face of market volatility.
Operating expenses decreased significantly by 53.6% compared to the fourth quarter of 2022, primarily due to impairment losses on the company’s digital assets, which amounted to $39.2 million during the quarter.
MicroStrategy reported a net income of $89.1 million for the fourth quarter of 2023, a notable improvement compared to the net loss recorded in the same period last year, driven by reduced operating expenses and gains from bitcoin holdings.
The company’s cash and cash equivalents increased to $46.8 million by the end of December 2023, reflecting prudent financial management and strategic investments.
MicroStrategy’s digital assets portfolio, consisting of approximately 189,150 bitcoins, was valued at $3.626 billion as of December 31, 2023, underscoring the company’s position as a major player in the cryptocurrency space.
In addition to its financial results, MicroStrategy provided supplemental non-GAAP financial measures, including non-GAAP loss from operations and non-GAAP net income, to offer investors a more comprehensive view of its performance.
The company remains committed to its bitcoin strategy and ongoing business transformation initiatives, leveraging its technological expertise and financial acumen to create long-term value for shareholders.
