MicroStrategy, the company known as the largest holder of bitcoin, reported profits after a 72% rise in the price of BTC in the first quarter of 2023.
MicroStrategy reports profits linked to bitcoin holdings
According to Bloomberg, MicroStrategy, the enterprise software maker known as the largest holder of bitcoin, reported its first profit since Q1 2023.
Michael Saylor’s publicly traded company has been accumulating BTC since 2020, with the aim of reducing the company’s cash holdings before the threat of inflation erodes.
With bitcoin up 72% in the first quarter of 2023, MicroStrategy is finally seeing the benefits.
In fact, the company’s shares have risen nearly 120% this year alone. Specifically, MicroStrategy reported first quarter net income of $461 million, or $31.79 per share, compared with a loss a year earlier.
Software revenue rose 2.2% to $121 million, beating the $119 million estimate of analysts polled by Bloomberg. The company took an $18.9 million write-down on digital assets in the three months ended March 31.
MicroStrategy: Shares Benefit from Bitcoin
With the rise of bitcoin, MicroStrategy has also seen its stock rise. Michael Saylor said:
“Ultimately, it is not easy to figure out what a better strategy might be. We have found that simply by acquiring and holding bitcoin, we can outperform our peers in the enterprise software industry. The regulatory environment for bitcoin is improving. Capital is flowing out of the cryptocurrency industry and into bitcoin”.
Only in this 2023, Saylor appears to have spent around $179 million to add 7,500 bitcoins to his stash.
And indeed, last April, MicroStrategy reportedly bought another 1045 BTC for a total of $29.3 million. While in March, the software company reportedly bought 6,455 BTC for around $150 million.
The price of bitcoin (BTC) in 2023
The queen of crypto, Bitcoin (BTC), started 2023 with a price of $16,500. With various fluctuations, the price of BTC remained bullish, reaching $25,000 in mid-February before falling back to $20,000 in mid-March.
Since then, BTC has been on a bullish trend, taking the price to $30,000 in mid-April.
Over the past two weeks, however, the price of the crypto queen has fallen, staying above $27,000 but never again reaching the $30,000 mark.
At the time of writing, BTC is worth $27,900 and its total market capitalisation is over $540 billion.
Source: https://en.cryptonomist.ch/2023/05/02/microstrategy-bitcoin-related-profits/