MicroStrategy Continues to Buy Bitcoin, Now Holds $13.22 Billion Worth of Bitcoin

MicroStrategy, a business intelligence firm led by Michael Saylor, continues to cause a stir in the cryptocurrency space, with its large holdings of bitcoin having become a focal point of the crypto community. According to on-chain analytics site lookonchain, MicroStrategy purchased an additional 122 bitcoins worth $7.8 million at $63,934 each in April. Since the end of the fourth quarter, the company has increased its bitcoin reserves by 25,250 coins. This brings MicroStrategy's total bitcoin holdings to 214,400, worth $13.22 billion, with an average purchase price of $35,180. According to lookonchain's estimates, at the current bitcoin price, the projected profit would be $5.68 billion. However, under current accounting rules, MicroStrategy is unable to report any increase in its bitcoin holdings, including a nearly 67 percent increase in the most recent quarter. However, this could be due to a recent accounting rule change that requires digital assets to be marked-to-market.MicroStrategy did not adopt the change in the first quarter, instead reporting an impairment loss of $191.6 million on its digital assets.In 2020, MicroStrategy became the first publicly traded company to use Bitcoin as a capital allocation strategy. Saylor noted the need to hedge against inflation. Despite Saylor winning over digital asset advocates, no other U.S. public companies have chosen to include Bitcoin in their financial statements, with the exception of Tesla and some cryptocurrency-related companies.