MicroStrategy’s bullish stance on Bitcoin ‘stronger than ever’ as fixed earnings after Q1 2023 ⋆ ZyCrypto
- MicroStrategy reported a first-quarter 2023 profit of $94 million attributed to a one-time tax benefit.
- The firm bought 7,500 BTC in the first quarter, bringing its total holdings to 140,000 BTC with no signs of abating.
- The firm’s Bitcoin holding turned to profit after BTC posted a 72% gain in the first quarter, wiping out losses in 2022.
Michael Saylor says his Bitcoin (BTC) strategy has outperformed stocks, similar assets and Bitcoin itself after positive results this year.
MicroStrategy has released its Q1 2023 report, which shows a profit of $94 million, marking the company’s first quarterly result in nearly three years. Profits recorded this quarter can be attributed to a tax benefit of $453 million and an upward revenue stream of 2.2% from last quarter ($121 million).
The firm also announced net income of $46.2 million, up from a loss of $130.8 million in Q1 2022. The company also paid off a $161 million BTC-backed loan to Silvergate Bank, with the former disbursing its 34,619 BTC.
MicroStrategy CEO Phong Lee stated that the company’s BTC stance is “stronger than ever” as the year progresses.
“The conviction in our Bitcoin strategy remains strong as the digital asset environment continues to mature. We remained disciplined on costs while investing in growth and will continue to execute our dual strategy of growing our intelligence software business and acquiring Bitcoin for the future,” he added .
Saylor, chairman of MicroStrategy, praised the company’s BTC strategy as the backbone of its first-quarter success.
“So in the end it is not easy what a better strategy could be. So we are strong supporters of the Bitcoin strategy. And as you can see from this chart, it makes sense to acquire Bitcoin as a good way to outperform the market.
Bullish on BTC despite small losses
According to the firm’s filings with the Securities and Exchange Commission (SEC), the company acquired 7,500 BTC in Q2 2023 with two huge purchases worth $179 million on March 23 and April 5. The firm’s BTC holdings now stand at 140,000 with no sign of slowing down.
Bought at an average of 29,803, the company’s BTC holdings turned green after BTC surged past the $30,000 mark in April. With the price of BTC below $29,000 at press time, MicroStrategy BTC holdings are down 5.8%.
Michael Saylor has maintained his bullish stance on BTC over the years and revealed that he had integrated Bitcoin Lightning into his email address while developing a layer 2 lightning network for companies.
