The one-time tax benefit helped the company achieve a profit of $94 million in the first quarter of 2023.
MicroStrategy business intelligence platform has reiterated its commitment to its Bitcoin investment strategy
BTC €25,47 after earning its first quarterly profit since 2020.
The Michael Saylor- founded firm returned to 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 1 statement that MicroStrategy’s “conviction” in its Bitcoin investment strategy
BTC €25,473 is as “loud” as ever:
“Conviction in our bitcoin strategy remains strong as the digital asset environment continues to mature.”
In addition to the tax benefit, the firm collected USD 121.9 million in revenue, 2.2% more than on the same dates last year.
Andrew Kang, the firm’s chief financial officer, said the firm was also able to reduce its leverage by repaying its $161 million Bitcoin-backed loan from the now-collapsed Silverage Bank:
“In the first quarter, we strengthened our capital structure by reducing leverage by fully repaying our bitcoin-backed loan.”
According to previous filings with the SEC, the business intelligence firm bought 7,500 BTC in the first quarter in two purchases made 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 about $29,803.
The company’s profits are due to BTC rising 72% during the first quarter, to reach $28,300.
With BTC currently priced at $28,100, MicroStrategy has lost 5.7% of its Bitcoin investment.
However, the company was in the “green” for a period of time last month when BTC soared to its most recent high of $30,980 on April 15.
The software analytics firm began investing its cash reserves in BTC on March 5, 2021, when it bought 91,064 BTC, 65% of its total holdings today.
Saylor recently revealed that MicroStrategy integrated Bitcoin Lightning into its corporate email address.
The Bitcoin-savvy firm is also in the process of developing a Software as a Service tool based on the Bitcoin layer-two Lightning network for corporations.