According to MicroStrategy's Q1 earnings report, the company purchased approximately 25,250 BTC for $1.65 billion during the first three months of this year at an average price of $65,232 per BTC.
With the latest purchases, MicroStrategy now holds a total of 214,400 BTC. This represents about 1% of the total Bitcoin supply. As of April 26, the company reported total holdings of $7.54 billion, or $35,180 per Bitcoin.
Although the company reported a decline in revenue, it continued to strengthen its Bitcoin holdings and emphasized its firm commitment to strategically investing in its flagship cryptocurrency.
The company's total revenue for the quarter was $115.2 million, down 5.5% year-over-year. Adjusted for currency, the decline was slightly larger, at 5.7%.
Despite the overall weakness, subscription services revenue increased, increasing 22% year-over-year to $23 million. This marks the increasing adoption of MicroStrategy's cloud-native software solutions.
The company posted a net loss of $53.1 million in the quarter, compared to net income of $461.2 million in the year-ago period. This loss was primarily due to a $191.6 million impairment charge on its Bitcoin holdings.
MicroStrategy's operating expenses also rose 152.8% to $288.9 million, further weighed down by the impairment of these digital assets. Gross profit for the quarter was $85.2 million, with a gross margin of 74.0%, down from 77.1% in the same period last year.
Despite these financial pressures, the company remains optimistic about its operational strategy and the integration of its software platform into cloud services. The recent approval of spot Bitcoin exchange-traded products also supports this outlook, suggesting that institutional demand for the cryptocurrency is likely to increase.
14 consecutive quarters
MicroStrategy CFO Andrew Kang said the company added Bitcoin to its balance sheet for the 14th consecutive quarter with its recent purchases.
Kang added that Bitcoin prices “rose significantly” in the first quarter of 2024, a trend attributed to the approval of spot Bitcoin ETFs, increased institutional investor interest, and improved regulatory clarity. said.
Bitcoin hit all-time highs at several points this year, and recently touch $73,686.93 as of March 14, according to CryptoSlate data.
Kang added that MicroStrategy raised $1.5 billion through two convertible debt issuances in the first quarter. Previous announcements indicated that the company spent some of the proceeds on Bitcoin.
MSTR stock performance
Michael Saylor, MicroStrategy's executive chairman and co-founder, touted the company's plans to acquire Bitcoin as an investment opportunity.
Saylor frequently touts MSTR stock as an alternative to spot Bitcoin ETFs and direct Bitcoin investments. He again backed up his own statements with long-term data. report MSTR has recorded a 937% price increase since adopting the Bitcoin strategy on August 10, 2020.
By comparison, Bitcoin's value has increased by 435% over the same period, while the S&P 500's value has only increased by 52%.
