The American company MicroStrategy, known for its investments in cryptocurrency, made public financial results for the first quarter of 2023. From January to March, the firm recorded a net profit of $461.2 million. Co-Founder and Former CEO Michael Saylor shared this news with the readers of his twitter. And no wonder: this is the first profitable quarter since 2020. Net loss for the first quarter of 2022 was $130.8 million.
Please join the @MicroStrategy management team at 5pm ET as we discuss our Q1 2023 $MSTR financial results and answers questions about our business and outlook for #BusinessIntelligence and #Bitcoin.https://t.co/pHrjKvWsDU
— Michael Saylor (@saylor) May 1, 2023
In three months, the company’s bitcoin wallet was replenished with 7,500 bitcoins. Thus, MicroStrategy now owns 140,000 BTC. As of March 31, 2023, the book value of the 140,000 BTC purchased was $2 billion, reflecting cumulative impairment losses of $2.17 billion.
MicroStrategy started buying cryptocurrency in August 2020 and since then has been trying to buy on the strait every time the opportunity presents itself.
Immediately after the first purchase, Sailor explained the rationale for investing in the first cryptocurrency: “This investment reflects our conviction that Bitcoin, as the world’s most widely accepted cryptocurrency, is a reliable store of value and an attractive investment asset with a longer-term growth potential in value than holding cash. money”.
MicroStrategy President and CEO Fong Le noted the company’s revenue growth in the first quarter of 2023. He also said that the firm still believes in bitcoin:
The commitment to our bitcoin strategy remains as strong as the digital asset space continues to evolve.
No wonder: since January, digital gold has grown in price by 70% and MicroStrategy’s position on bitcoin was even in positive territory for some time after the breakdown of $30,000 (at the moment, the company states unrealized losses from investments in the first cryptocurrency, since the average purchase price of one bitcoin $29,803).
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