MicroStrategy’s First Quarter Earnings Report: Firm Adds 25,250 BTC to Holdings
MicroStrategy, a business intelligence firm, made headlines with its first quarter earnings report, revealing that it had 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 move brings the company’s total Bitcoin holdings to 214,400 BTC, which is roughly 1% of the total Bitcoin supply.
Despite reporting a downturn in revenue, MicroStrategy continued to bolster its Bitcoin holdings, showcasing a steadfast commitment to its strategic investment in the flagship cryptocurrency. The company’s total revenue for the first quarter stood at $115.2 million, representing a 5.5% decrease from the previous year. However, subscription services revenue saw a rise of 22% year-over-year, indicating a growing adoption of MicroStrategy’s cloud-native software solutions.
The firm posted a net loss of $53.1 million for the quarter, largely due to a $191.6 million impairment loss on its Bitcoin holdings. Operating expenses also increased significantly, up 152.8% to $288.9 million, further impacted by these digital asset impairments. Despite these financial pressures, MicroStrategy 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, greater institutional interest, and improved regulatory clarity. Bitcoin hit all-time highs at several points this year, reaching $73,686.93 on March 14.
MicroStrategy executive chairman and co-founder Michael Saylor promoted the company’s Bitcoin acquisition initiative as an investment opportunity, emphasizing MSTR stock as an alternative to spot Bitcoin ETFs and direct Bitcoin investment. Saylor pointed out that MSTR has seen 937% price growth since adopting its Bitcoin strategy in August 2020, outperforming Bitcoin’s 435% growth and the S&P 500’s 52% appreciation over the same period.
