MicroStrategy, a prominent business intelligence company, has announced their first quarter earnings report, revealing that they purchased approximately 25,250 BTC for $1.65 billion at an average price of $65,232 per BTC in the first three months of the year. This latest acquisition brings MicroStrategy’s total Bitcoin holdings to 214,400 BTC, which is around 1% of the total Bitcoin supply. The company reported their total holdings at a cost of $7.54 billion, or $35,180 per bitcoin, as of April 26.
Despite a downturn in revenue, MicroStrategy has continued to enhance its Bitcoin holdings, demonstrating a steadfast commitment to its strategic investment in the cryptocurrency. The firm reported a 5.5% decrease in total revenue for the first quarter, but subscription services revenue saw a rise of 22% year-over-year to $23.0 million, indicating growing adoption of MicroStrategy’s cloud-native software solutions.
MicroStrategy posted a net loss of $53.1 million for the quarter, primarily due to a $191.6 million impairment loss on its Bitcoin holdings. Operating expenses also increased significantly, up 152.8% to $288.9 million, impacted by digital asset impairments. Despite these financial challenges, the company remains optimistic about its operational strategy and the integration of its software platforms into cloud services.
Andrew Kang, MicroStrategy CFO, highlighted that the company added Bitcoin to its balance sheet for the 14th consecutive quarter with its latest purchases. Kang attributed Bitcoin’s price appreciation in the first quarter to the approval of spot Bitcoin ETFs, increased institutional interest, and improved regulatory clarity.
MicroStrategy executive chairman and co-founder Michael Saylor has been a vocal proponent of the company’s Bitcoin acquisition initiative as an investment opportunity. Saylor has compared MSTR stock performance to spot Bitcoin ETFs and direct Bitcoin investment, noting that MSTR has seen 937% price growth since adopting its Bitcoin strategy in August 2020. In comparison, Bitcoin has grown 435% in the same period, while the S&P 500 has only appreciated 52%.
