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Business intelligence platform MicroStrategy has reiterated its commitment to its Bitcoin (BTC) investment strategy after posting its first quarterly profit since 2020.
The company founded by Michael Thaler returned to the green with a profit of $94 million in the first quarter of 2023. This was primarily due to a one-off income tax benefit of $453.2 million.
Fung Li, CEO of the company, said: explained A May 1 statement said MicroStrategy’s “belief” in its Bitcoin (BTC) investment strategy is “strong” than ever before.
“Confidence in the Bitcoin strategy remains strong as the digital asset landscape continues to mature.”
In addition to tax benefits, the company posted revenue of $121.9 million, up 2.2% year-over-year.
please join @micro strategy Management team discussing Q1 2023 at 5pm ET $MSTR Answering questions about our business and future prospects # Business Intelligence and #bitcoin.https://t.co/pHrjKvWsDU
— Michael Saylor ⚡️ (@saylor) May 1, 2023
The company’s chief financial officer, Andrew Kang, said it was also able to reduce its leverage by paying off a $161 million bitcoin-backed loan from the now-defunct Silver Age Bank. .
“In Q1, we reduced leverage and strengthened our capital structure by fully repaying our Bitcoin-backed loans.”
The business intelligence firm bought 7,500 BTC in the first quarter for a total of $179 million in two purchases on March 23 and April 5, according to previous SEC filings.
The company currently holds 140,000 BTC, which are bought in bulk for an average of around $29,803.
The turnaround for the company’s profits came as BTC surged 72% in the first quarter to around $28,300.
Related: MicroStrategy’s stock price will more than double in 2023, in line with Bitcoin
BTC is currently priced at $28,100 and MicroStrategy is down about 5.7% in its Bitcoin investment.
However, the company was “green” for a while last month when bitcoin surged to a recent high of $30,980 on April 15.
ever since @micro strategy It was adopted #bitcoin strategy: pic.twitter.com/rrYTbvOkUS
— Michael Saylor ⚡️ (@saylor) May 1, 2023
The software analytics company began investing its cash reserves in BTC when it purchased 91,064 BTC on March 5, 2021. This is 65% of today’s total holdings.
Saylor recently revealed that MicroStrategy has integrated Bitcoin Lightning into his company email address.
The Bitcoin-savvy company is also developing a Bitcoin Layer 2 Lightning Network-based software-as-a-service tool for businesses.
magazine: Magazine: Bitcoin in Senegal: Why is this African country using BTC?
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