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MicroStrategy Q1 Earning reports Bitcoin Holdings surpassing $5 Billion

Some experts thought that Bitcoin transactions would slow down due to the ongoing pandemic. However, the current Q1 reports from MicroStrategy beg to differ. 

The much-awaited financial reports from MicroStrategy for the first quarter of 2021 depict the company’s all Bitcoin investments during the period. According to the report, the company saw a total revenue of $122.9 million in the first financial quarter of this year. This value exceeds the revenue of the first quarter from the previous year by 10.3% 

Among the revenue, $100.4 Million contributes to profit, representing a boost in gross margin from 78% in Q1 2020 to 81.7% in Q2. This significant increase in numbers could be written off to MicroStrategy’s well-publicized Bitcoin acquisition strategy. Sticking to this strategy, the company acquired about 20,857 Bitcoins during this time at a net price of $1.086 Billion, which amounts to an average of $52,087 per BTC. 

“MicroStrategy’s first-quarter results were a clear example [of] our two-pronged corporate strategy,” the release from MicroStrategy stated. “To grow our enterprise analytics software business and acquire and hold bitcoin [which] is generating substantial shareholder value.”

How do they do it?

The gross profit that the company acquired in the first quarter of 2021 makes us curious about what they do differently. However, it is no secret as MicroStrategy has always been open about its strategy to purchase Bitcoin. 

In fact, CEO Michael Saylor spoke about their approach, “We continue to be pleased with our bitcoin strategy,”. He elaborated that MicroStrategy raised over $1 Billion as additional capital in the first quarter, which helped them expand their holdings. 

According to a tweet from Michael Saylor, MicroStrategy currently holds about 91,579 Bitcoins which at its current price amounts to more than $5 Billion. Saylor concluded, “we will continue to acquire and hold additional bitcoin as we seek to create additional value for shareholders.” 

The company bought its first Bitcoin in Aug 2020 for $123. Since then, the prices have increased by over 430%, explaining the profits and revenue. 

With the rise in popularity of cryptocurrency and the increase in Bitcoin’s price, the revenue is bound to increase in the coming years. We are excited to see the financial reports of other companies and their profit generated in the first quarter of 2021. 

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