At the time of writing, MicroStrategy holds 140,000 BTC.
MicroStrategy reaffirms its commitment to Bitcoin (BTC) investment after achieving its first quarterly profit since 2020.
The technology company, founded by Michael Saylor, reported a Q1 profit of $94 million, primarily caused by the one-time income tax benefit of $453.2 million. MicroStrategy also generated $121.9 million in revenue, a 2.2% increase compared to last year.
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In a May 1st statement, MicroStrategy CEO Phong Lee expressed that MicroStrategy's "conviction" in its Bitcoin investment strategy remains "strong":
The conviction in our Bitcoin strategy remains strong as the digital asset environment continues to mature.
Lee emphasized the company's focus on managing costs and investing in growth, all while pursuing a dual strategy of growing the "business intelligence software business and acquiring Bitcoin for the future."
The CEO also highlighted that short-term BTC price fluctuations do not affect the company's "core business."
Michael Saylor, who also serves as MicroStrategy's chairman, credited the successful quarter to the firm's solid execution of its core business model and its Bitcoin investment thesis.
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.
The Bitcoin advocate also indicated that investors would soon shift away from crypto assets under regulatory scrutiny, ultimately benefiting Bitcoin.
MicroStrategy CFO Andrew Kang highlighted that the company managed to reduce its leverage by repaying a $161 million Bitcoin-backed loan from Silverage Bank:
By 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.
According to SEC filings, MicroStrategy purchased 7,500 BTC in Q1 across two transactions made on March 23rd and April 5th, totaling $179 million. The company now holds 140,000 BTC, acquired at an average cost of around $29,803.
