{"id":11769,"date":"2023-05-02T03:27:48","date_gmt":"2023-05-02T03:27:48","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=11769"},"modified":"2023-05-02T03:27:49","modified_gmt":"2023-05-02T03:27:49","slug":"microstrategys-bitcoin-conviction-strong-as-it-posts-q1-profit","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=11769","title":{"rendered":"MicroStrategy\u2019s Bitcoin conviction \u2018strong\u2019 as it posts Q1 profit"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>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<p>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<p>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<p>Phong Lee, the firm\u2019s CEO,\u00a0explained in the May 1 statement that MicroStrategy\u2019s \u201cconviction\u201d in its Bitcoin (BTC) investment strategy is as \u201cstrong\u201d as ever: <\/p>\n<p>\u201cThe conviction in our Bitcoin strategy remains strong as the digital asset environment continues to mature.\u201d<\/p>\n<p>&#8220;We remain disciplined on costs while investing in growth, and we will continue to execute our dual strategy of growing our business intelligence software business and acquiring Bitcoin for the future,&#8221; he added.<\/p>\n<p>Lee also stressed that its \u201ccore business&#8221; is not impacted by short-term price fluctuations in BTC.<\/p>\n<p lang=\"en\" dir=\"ltr\">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<\/p>\n<p>\u2014 Michael Saylor\u26a1\ufe0f (@saylor) May 1, 2023<\/p>\n<p>Saylor, who serves as MicroStrategy\u2019s chairman, attributed the successful quarter to sharp execution in the firm\u2019s core business model and its Bitcoin investment thesis, which he described as the \u201cright strategy,&#8221; adding:<\/p>\n<p>\u201cSo ultimately, it\u2019s not easy to see what better strategy there might be. And so, we are strong proponents of a Bitcoin strategy. And as you can see from this chart, simply acquiring and holding Bitcoin in a prudent fashion is a pretty good way to outperform the market.&#8221;<\/p>\n<p>The Bitcoin advocate predicted that investors will soon exit their positions on crypto assets that are \u201cunder the microscope in the regulatory environment,\u201d which in turn will \u201cflow into Bitcoin.\u201d <\/p>\n<p>MicroStrategy chief financial officer\u00a0Andrew Kang added the firm also managed to reduce its leverage by repaying its $161 million Bitcoin-backed loan from the now-collapsed Silverage Bank:<\/p>\n<p>\u201cBy retiring the debt, we also released all of the Bitcoin that were pledged as collateral securing the loan. This was an important and strategic transaction for us and our liability management goals.&#8221;<\/p>\n<p>According to 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<p><em>MicroStrategy\u2019s Bitcoin accumulation by quarter. Source: MicroStrategy<\/em><\/p>\n<p>The firm now holds 140,000 BTC, which were collectively purchased at an average cost of about $29,803.<\/p>\n<p>The firm\u2019s turn to profit comes as BTC managed to rise 72% over the first quarter to about $28,300. <\/p>\n<p><em><strong>Related: <\/strong><strong>MicroStrategy\u2019s stock price more than doubles in 2023 in lockstep with Bitcoin<\/strong><\/em><\/p>\n<p>With the price of BTC at $28,100 currently, MicroStrategy is down around 5.7% on its Bitcoin investment. <\/p>\n<p>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<p lang=\"en\" dir=\"ltr\">Since @MicroStrategy adopted a #Bitcoin Strategy: pic.twitter.com\/rrYTbvOkUS<\/p>\n<p>\u2014 Michael Saylor\u26a1\ufe0f (@saylor) May 1, 2023<\/p>\n<p>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<p>Saylor recently revealed that MicroStrategy integrated Bitcoin Lightning into his corporate email address.<\/p>\n<p>The Bitcoin-savvy firm is also in the process of developing a Bitcoin layer-2\u00a0Lightning Network-based Software as a Service tool for corporations. <\/p>\n<p><em><strong>Magazine: <\/strong><strong>Magazine: Bitcoin in Senegal: Why is this African country using BTC?<\/strong><\/em><\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/microstrategy-s-bitcoin-conviction-strong-as-it-returns-to-profit-in-q1-ceo\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Business intelligence platform MicroStrategy has reiterated its commitment to its Bitcoin (BTC) investment strategy after turning its first quarterly profit since 2020.\u00a0 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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11770,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-11769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11769"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11769\/revisions"}],"predecessor-version":[{"id":11771,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11769\/revisions\/11771"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/11770"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}