MicroStrategy released Q1 report, unaffected by Bitcoin uncertainty

International software solutions firm MicroStrategy has released its first quarter earnings report. Revenue is up marginally, and the company remains committed to Bitcoin.

On May 1, MicroStrategy announced its financials for the first three months of 2023. The firm disclosed that it had first quarter net income of $461.2 million, or $31.79 per diluted share. In comparison, it had a net loss of $130.8 million for the first quarter of 2022.

Micro strategy committed to Bitcoin

Total revenue for the period was $121.9 million, an increase of 2.2% compared to the first quarter of 2022. Furthermore, revenue from product licenses and subscription services for the first quarter was $36.2 million, an increase of 23.4% in compared to the same period in 2022.

However, there was a slight decline in product support revenue and other service revenue, it noted.

MicroStrategy President and CEO Phong Le commented that the durability of the company’s Business Intelligence platform and the depth of its existing customer base continued to drive growth. He added that the firm remained committed to Bitcoin:

“The conviction in our Bitcoin strategy remains strong as the digital asset environment continues to mature.”

Also, the world’s largest digital asset gained 70% during the first quarter of 2023.

The firm’s CFO, Andrew Kang, explained that MicroStrategy strengthened its capital structure by reducing leverage by repaying its Bitcoin-backed loan in Q1.

Furthermore, it bought another 7,500 BTC to bring its balance to 140,000. This is valued at around $3.9 billion at current prices.

“Our goals for the enterprise analytics software business remain to grow our revenue and transition that business to the cloud,” he said.

In April, company founder Michael Saylor converted his corporate email address to a BTC Lightning address.

MicroStrategy stock didn’t react particularly well to the news, falling 6.37% on the day. As a result, MSTR had fallen to $310 in after-hours trading. However, the firm has had a solid year, with share prices up 114% since the start of 2023.

Bitcoin Holdings back in the red

According to Bitcoin Treasuries, the firm is down 7% on its BTC holdings since the total cost base value equals $4.2 billion.

The company is the largest commercial owner of Bitcoin. However, the huge stack of 140,000 is back in the red after the crypto market correction.

Bitcoin needs to return to $30,000 for MicroStrategy to be back in the black, but the company’s executives seem unfazed.