MicroStrategy Doubles Down on Bitcoin with 7,500 BTC Purchase
On Monday, MicroStrategy, a well-known software company, announced that it had acquired 7,500 bitcoin during the first quarter of the year, increasing its total holdings to 140,000 bitcoins, which is currently worth nearly $4 billion.
MicroStrategy CEO Phong Le stated that the company’s confidence in its Bitcoin strategy remained strong as the digital asset market continues to mature.
In the first quarter of 2023, the company recorded a net income of $461.2 million, an improvement from the $130.8 million net loss in the same quarter the previous year and the $249.7 million net loss in the fourth quarter of 2022.
The gains were attributed to income tax benefits and a gain on debt repayment. Despite this, the company’s operating loss for the quarter was $20.3 million, which is an improvement compared to the $170 million operating loss in the same quarter of 2022. Total revenues for the period increased 2.2% from the same period last year to $121.9 million.
On Twitter, MicroStrategy co-founder Michael Saylor shared a graph showing the company’s performance relative to other companies and indexes since it began implementing its Bitcoin strategy.
Since @MicroStrategy adopted a #Bitcoin Strategy: pic.twitter.com/rrYTbvOkUS
— Michael Saylor⚡️ (@saylor) May 1, 2023
READ MORE: Bitcoin Will Be the Last Crypto Standing, According to Trading Veteran Peter Brandt
TradingView reported that the company’s shares had risen by 1.2% in post-market trading. As of March 31, MicroStrategy’s 140,000 Bitcoin holdings had a carrying value of $2 billion, with an average cost per Bitcoin of $29,803, slightly above the current market price of $27,898.
The company also disclosed that it had purchased Bitcoin using $179.3 million in proceeds from the sale of class A common stock under a 2022 sales agreement. According to CoinGecko, Bitcoin increased by approximately 72% over the 3-month period.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
