MicroStrategy’s first quarter earnings report confirmed the agency purchased roughly 25,250 BTC for $1.65 billion at a mean value of $65,232 per BTC through the first three months of the yr.
With its newest purchases, MicroStrategy now holds 214,400 BTC in complete — equating to roughly 1% of the full Bitcoin provide. The corporate reported its complete holdings at a value of $7.54 billion, or $35,180 per bitcoin, as of April 26.
The agency reported a downturn in income however continued to bolster its Bitcoin holdings, highlighting a steadfast dedication to its strategic funding within the flagship crypto.
The corporate’s complete income for the primary quarter stood at $115.2 million, representing a 5.5% lower from the earlier yr. The decline was barely steeper when adjusted for fixed foreign money, with a 5.7% lower.
Regardless of the general downturn, subscription companies income noticed an increase, climbing 22% year-over-year to $23.0 million, which signifies a rising adoption of MicroStrategy’s cloud-native software program options.
The corporate posted a internet lack of $53.1 million for the quarter, a stark distinction to the web revenue of $461.2 million reported in the identical quarter final yr. The loss was largely as a consequence of a $191.6 million impairment loss on its Bitcoin holdings.
MicroStrategy’s working bills additionally ballooned, up 152.8% to $288.9 million, additional weighed down by these digital asset impairments. Gross revenue for the quarter stood at $85.2 million, with a gross margin of 74.0%, down from 77.1% a yr in the past.
Regardless of these monetary pressures, the corporate stays optimistic about its operational technique and the mixing of its software program platforms into cloud companies. The latest approval of spot bitcoin exchange-traded merchandise has additionally bolstered this outlook, suggesting a possible improve in institutional demand for cryptocurrencies.
14th consecutive quarter
Andrew Kang, MicroStrategy CFO, famous that the corporate added Bitcoin to its steadiness sheet for the 14th consecutive quarter with its newest purchases.
Kang added that Bitcoin’s value “appreciated considerably” within the first quarter of 2024 and attributed the development to the approval of spot Bitcoin ETFs, higher institutional curiosity, and improved regulatory readability.
Bitcoin hit all-time highs at a number of factors this yr, most just lately touching $73,686.93 on March 14, in keeping with CryptoSlate information.
Kang added that MicroStrategy raised $1.5 billion by means of two convertible debt choices within the first quarter. Earlier bulletins indicated that the agency spent a portion of raised funds on Bitcoin.
MSTR inventory efficiency
MicroStrategy govt chairman and co-founder Michael Saylor promoted the corporate’s Bitcoin acquisition initiative as an funding alternative.
Saylor typically touts MSTR inventory as a substitute for spot Bitcoin ETFs and direct Bitcoin funding. He as soon as once more backed his statements with long-term information — reporting that MSTR has seen 937% value development since adopting its Bitcoin technique on August 10, 2020.
By comparability, Bitcoin has grown 435% in worth over the identical interval, whereas the S&P 500 has solely appreciated 52%.
