MicroStrategy: Bitcoin Related Profits – The Cryptonomist
MicroStrategy, the company known as the largest holder of bitcoin, reported profit after a 72% increase in the price of BTC in the first quarter of 2023.
MicroStrategy reports profits tied to bitcoin holdings
According to Bloomberg, MicroStrategy, the enterprise software maker known as the largest holder of bitcoinreported its first profit since Q1 2023.
Michael Saylor’s publicly traded company has been accumulating BTC since 2020with the aim of reducing the company’s cash holdings before the threat of inflation erodes.
With bitcoin up 72% in the first quarter of 2023MicroStrategy is finally seeing the benefits.
In fact, the company’s stock has risen nearly 120% this year alone. Specifically, MicroStrategy reported net income of $461 million in the first quarteror 31.79 dollars per share, compared to a loss the previous year.
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: Stocks benefit from Bitcoin
With the rise of bitcoin, MicroStrategy has also seen its stock rise. Michael Saylor so:
“Ultimately, it’s not easy to figure out what a better strategy might be. We’ve 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 flowing out of the cryptocurrency industry and into bitcoin”.
Only in 2023it seems that Saylor has spent around $179 million to add 7,500 bitcoins to his stash.
And in fact last April, MicroStrategy reportedly bought another 1,045 BTC for a total of $29.3 million. 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 and reached $25,000 in mid-February before falling back to $20,000 in mid-March.
Since then, BTC has been on a bullish trendtakes the price to $30,000 in mid-April.
However, over the past two weeks, the price of the crypto queen has fallen and stayed above $27,000 but never reaches more than $30,000.
At the time of writing, BTC is worth $27,900 and its total the market value is over 540 billion dollars.
