{"id":18352,"date":"2023-05-02T01:41:22","date_gmt":"2023-05-02T01:41:22","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/microstrategys-bitcoin-conviction-strong-as-it-posts-q1-profit\/"},"modified":"2023-05-02T01:41:24","modified_gmt":"2023-05-02T01:41:24","slug":"microstrategys-bitcoin-conviction-strong-as-it-posts-q1-profit","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/microstrategys-bitcoin-conviction-strong-as-it-posts-q1-profit\/","title":{"rendered":"MicroStrategy’s Bitcoin conviction ‘strong’ as it posts Q1 profit"},"content":{"rendered":"
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Business intelligence platform MicroStrategy has reiterated its commitment to its Bitcoin (BTC) investment strategy after turning its first quarterly profit since 2020.\u00a0<\/p>\n

The Michael Saylor-founded firm went back into the green in the first quarter of 2023 with a profit of $94 million, which was largely attributed to a one-time income tax benefit of $453.2 million.<\/p>\n

Phong Lee, the firm\u2019s chief executive officer explained in the May 1 statement that MicroStrategy\u2019s \u201cconviction\u201d in its Bitcoin (BTC) investment strategy is as \u201cstrong\u201d as ever: <\/p>\n

\u201cThe conviction in our bitcoin strategy remains strong as the digital asset environment continues to mature.\u201d<\/p><\/blockquote>\n

In addition to the tax benefit, the firm cashed in $121.9 million in revenue, up 2.2% from the same time last year.<\/p>\n

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Please join the @MicroStrategy<\/a> management team at 5pm ET as we discuss our Q1 2023 $MSTR<\/a> financial results and answer questions about our business and outlook for #BusinessIntelligence<\/a> and #Bitcoin<\/a>.https:\/\/t.co\/pHrjKvWsDU<\/p>\n

\u2014 Michael Saylor\u26a1\ufe0f (@saylor) May 1, 2023<\/a><\/p><\/blockquote>\n

Andrew Kang, the firm\u2019s chief financial officer said the firm also managed to reduce its leverage by repaying its $161 million Bitcoin-backed loan from the now-collapsed Silverage Bank:<\/p>\n

\u201cIn Q1, we strengthened our capital structure by reducing leverage by fully repaying our bitcoin-backed loan.\u201d<\/p><\/blockquote>\n

As per previous SEC filings, the business intelligence firm bought 7,500 BTC in Q1 across two purchases on March 23 and April 5 for a total of $179 million. <\/p>\n

MicroStrategy\u2019s Bitcoin accumulation by quarter. Source: MicroStrategy<\/em><\/figcaption><\/figure>\n

The firm now holds 140,000 BTC, which were collectively purchased at an average cost of about $29,803.<\/p>\n

The firm\u2019s turn to profit comes as BTC managed to rise 72% over the first quarter to about $28,300. <\/p>\n

Related: <\/strong>MicroStrategy\u2019s stock price more than doubles in 2023 in lockstep with Bitcoin<\/strong><\/p>\n

With the price of BTC at $28,100 currently, MicroStrategy is down around 5.7% on its Bitcoin investment. <\/p>\n

The firm was however in the \u201cgreen\u201d for a period of time last month when BTC skyrocketed to its most recent high of $30,980 on April 15.<\/p>\n

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Since @MicroStrategy<\/a> adopted a #Bitcoin<\/a> Strategy: pic.twitter.com\/rrYTbvOkUS<\/a><\/p>\n

\u2014 Michael Saylor\u26a1\ufe0f (@saylor) May 1, 2023<\/a><\/p><\/blockquote>\n

The software analytics firm began investing its cash reserves into BTC on March 5, 2021 when it bought 91,064 BTC \u2014 65% of its total holdings today.<\/p>\n

Saylor recently revealed that MicroStrategy integrated Bitcoin Lightning into his corporate email address.<\/p>\n

The Bitcoin-savvy firm is also in the process of developing a Bitcoin layer-2 Lightning Network-based Software as a Service tool for corporations. <\/p>\n

Magazine: <\/strong>Magazine: Bitcoin in Senegal: Why is this African country using BTC?<\/em><\/strong><\/p>\n<\/div>\n