The MicroStrategy business intelligence platform has reiterated its commitment to its Bitcoin (BTC) investment strategy after posting its first quarterly profit since 2020.
He michael saylorThe founded company was back in the green in the first quarter of 2023 with a profit of $94 million, which was largely attributed to a one-time income tax benefit of $453.2 million.
Phong Lee, CEO of the firm explained in the May 1st statement that MicroStrategy's "condemnation" on its Bitcoin (BTC) the investment strategy is as โstrongโ as ever:
"Conviction in our bitcoin strategy remains strong as the digital asset environment continues to mature."
In addition to the tax benefit, the company collected $121.9 million in revenue, 2.2% more than in the same period last year.
Please join the @MicroStrategy management team at 5 pm ET as we discuss our first quarter of 2023 $MSTR financial results and answer questions about our business and prospects for #Business Intelligence and #Bitcoin.https://t.co/pHrjKvWsDU
โMichael Saylorโก๏ธ (@saylor) May 1, 2023
Andrew Kang, the company's chief financial officer, said the company was also able to reduce its leverage by paying off its Bitcoin-backed $161 million loan from the Silverage Bank now collapsed:
"In the first quarter, we strengthened our capital structure by reducing leverage by paying off our bitcoin-backed loan in full."
According to previous SEC filings, the trade intelligence firm bought 7,500 BTC in the first quarter in two purchases on March 23 and April 5 for a total of $179 million.
The company now owns 140,000 BTC, which were collectively purchased at an average cost of around $29,803.
The firm's turn towards profit comes as BTC managed to surge 72% during Q1 to around $28,300.
Related: MicroStrategy stock price more than doubles in 2023 at the same time as Bitcoin
With the BTC price at $28,100 currently, MicroStrategy is down around 5.7% on its Bitcoin investment.
However, the company was in the "green" for a period of time last month when BTC shot up to its most recent high of $30,980 on April 15.
From @MicroStrategy adopted a #Bitcoin Strategy: pic.twitter.com/rrYTbvOkUS
โMichael Saylorโก๏ธ (@saylor) May 1, 2023
The software analytics firm began investing its cash reserves in BTC on March 5, 2021 when it purchased 91,064 BTC, 65% of its total holdings today.
Saylor recently revealed that MicroStrategy integrated Bitcoin Lightning into his corporate email address.
The Bitcoin expert company is also in the process of developing a Bitcoin layer 2 Software-as-a-Service Tool Based on the Lightning Network for corporations.
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