The business intelligence platform MicroStrategy has reiterated its commitment to its Bitcoin (BTC) investment strategy. after earning its first quarterly profit since 2020.
The firm founded by Michael Saylor returned to the green numbers in the first quarter of 2023 with a profit of USD 94 million, which was largely attributed to a one-time income tax benefit of $453.2 million.
phong lee, CEO of the firm, explained in the statement of May 1 that MicroStrategy’s “conviction” in its Bitcoin (BTC) investment strategy is as “strong” as ever:
“Conviction in our bitcoin strategy remains strong as the digital asset environment continues to mature.”
In addition to the tax benefit, the firm collected USD 121.9 million in revenue, 2.2% more than on the same dates last year.
Please join the @MicroStrategy management team at 5pm ET as we discuss our Q1 2023 $MSTR financial results and answer questions about our business and outlook for #BusinessIntelligence and #Bitcoin.https://t.co/pHrjKvWsDU
—Michael Saylor⚡️ (@saylor) May 1, 2023
Andrew Kang, The firm’s chief financial officer said the firm was also able to reduce its leverage by repaying its $161 million Bitcoin-backed loan from the now-collapsed Silverage Bank:
“In the first quarter, we strengthened our capital structure by reducing leverage by fully repaying our bitcoin-backed loan.”
According to previous filings with the SEC, the business intelligence firm bought 7,500 BTC in the first quarter in two purchases made on March 23 and April 5 for a total of USD 179 million.
The company now owns 140,000 BTC, which were collectively purchased at an average cost of about $29,803.
The company’s profits are due to BTC rising 72% during the first quarter, to reach $28,300.
With BTC currently priced at $28,100, MicroStrategy has lost 5.7% of its Bitcoin investment.
However, the company was in the “green” for a period of time last month when BTC was shot up to its most recent high of $30,980 on April 15.
Since @MicroStrategy adopted a #Bitcoin Strategy: pic.twitter.com/rrYTbvOkUS
—Michael Saylor⚡️ (@saylor) May 1, 2023
The software analytics firm began investing its cash reserves in 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 its corporate email address.
The Bitcoin-savvy firm is also in the process of developing a Software as a Service tool based on the Bitcoin layer two Lightning network for corporations.
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