Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Topic started by: Coinpedia Fintech News on May 02, 2023, 08:23:25 AM
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MicroStrategy, the business intelligence platform founded by Michael Saylor, has achieved a major milestone by reporting a profit of $94 million in the first quarter of 2023. This marks a significant turnaround for the company, which had previously struggled with losses.
MicroStrategy's investment in Bitcoin has been a key driver of its financial success. In March 2021, the company purchased 91,064 BTC, which now constitutes 65% of its total holdings. Despite the recent volatility in the cryptocurrency market, MicroStrategy remains committed to its Bitcoin investment strategy.
Phong Lee, the CEO of MicroStrategy, expressed his strong conviction in the company's Bitcoin strategy and emphasized that they remain confident in it as the digital asset environment matures. The company's investment in Bitcoin has paid off handsomely, with the current holdings of 140,000 BTC collectively purchased at an average cost of about $29,803.
During Q1, the price of Bitcoin surged by 72%, reaching around $28,300, which contributed significantly to MicroStrategy's financial success. Additionally, the company has been reducing its leverage by repaying its $161 million Bitcoin-backed loan from the now-collapsed Silverage Bank, further strengthening its financial position.
MicroStrategy is not just investing in Bitcoin but also integrating it into its operations. For instance, the company has integrated Bitcoin Lightning into its corporate email address and is developing a Bitcoin layer-2 Lightning Network-based Software as a Service tool for corporations.
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I do not know how his earnings have exploded because as far as i know his average btc buying price is still around 30k so its nearly breakeven point not explosive profits.