MicroStrategy’s Q1 Profit Proves Their Unwavering Bitcoin Conviction!

"MicroStrategy's Bitcoin Investment Strategy Pays Off, Firm Reports $94 Million Profit in Q1 2023"

MicroStrategy, the business intelligence platform founded by Michael Saylor, has announced its first quarterly profit since 2020. The firm’s profit of $94 million in the first quarter of 2023 was largely attributed to a one-time income tax benefit of $453.2 million. In addition to this, the firm cashed in $121.9 million in revenue, up 2.2% from the same time last year. MicroStrategy’s CEO, Phong Lee, stated that the firm’s “conviction” in its Bitcoin investment strategy is as “strong” as ever. This comes as the firm reduced its leverage by repaying its $161 million Bitcoin-backed loan from the now-collapsed Silverage Bank.

MicroStrategy bought 7,500 BTC in Q1 across two purchases on March 23 and April 5 for a total of $179 million. The firm now holds 140,000 BTC, which were collectively purchased at an average cost of about $29,803. The firm’s turn to profit comes as BTC managed to rise 72% over the first quarter to about $28,300. With the price of BTC at $28,100 currently, MicroStrategy is down around 5.7% on its Bitcoin investment. The firm was, however, in the “green” for a period of time last month when BTC skyrocketed to its most recent high of $30,980 on April 15.

MicroStrategy began investing its cash reserves into BTC on March 5, 2021 when it bought 91,064 BTC — 65% of its total holdings today. Saylor recently revealed that MicroStrategy integrated Bitcoin Lightning into his corporate email address. The Bitcoin-savvy firm is also in the process of developing a Bitcoin layer-2 Lightning Network-based Software as a Service tool for corporations.

MicroStrategy’s commitment to its Bitcoin investment strategy is a significant development in the cryptocurrency industry. The firm’s turn to profit is a testament to the potential of Bitcoin as a store of value and a hedge against inflation. MicroStrategy’s bullish stance on Bitcoin is shared by other institutional investors, such as Tesla and Square, who have also invested in the cryptocurrency. However, it is worth noting that Bitcoin’s volatility remains a concern for many investors, and caution should be exercised when investing in the cryptocurrency.

Martin Reid

Martin Reid

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