Diamond Hands: MicroStrategy Stills HODLs 91,579 BTC Despite Billions in Profit
Enterprise and analytics software company MicroStrategy released its first-quarter earnings report on Thursday, detailing, among other things, that the company did not liquidate any portion of its Bitcoin holdings.
MicroStrategy recorded one of the strongest quarters for its enterprise business, with a 10.3% revenue increase compared to the first quarter of 2020. While the company was hard at work growing its business operations, its BTC holding was also doing more serious numbers.
MicroStrategy has been on a Bitcoin purchasing spree, converting a large chunk of the company’s Treasury reserve into Bitcoin, and even raising an additional $1 billion in debt to buy Bitcoin.
Given Bitcoin’s spectacular 90% year-to-date (YTD) return and over 300% increase since MicroStrategy’s initial purchase, spectators were evidently looking forward to seeing whether the company would book some of its profits this quarter.
In total, MicroStrategy has acquired 91,579 BTC at an average cost basis of $2.26 billion. At today’s prices, the company’s Bitcoin holdings are valued at over $4.8 billion, representing a 220% increase.
However, the company doesn’t seem moved by on-paper profits, aligning with earlier comments by CEO Michael Saylor that the company would continue to acquire more bitcoin rather than trim its position anytime soon.
In its latest earnings report, Saylor admitted the company is pleased with its “bitcoin strategy,” having increased its position throughout the quarter, and successfully organized a corporate event that showed other companies how to create and adopt a Bitcoin strategy.
“We will continue to acquire and hold additional bitcoin as we seek to create additional value for shareholders,” Saylor added.
Worth noting is that MicroStrategy’s cash holdings increased by $22.9 million in the first quarter and currently stand at $82.5 million. It might not be surprising to see the company go shopping for bitcoin anytime soon in line with its strategy.
Meanwhile, Tesla’s earnings report earlier this week revealed that the company sold roughly 10% of the $1.5 billion bitcoin they purchased in February.
Although the move was received with mixed feelings by the Bitcoin community, CEO Elon Musk suggested on Twitter that the booked profits were just a sort of ‘liquidity test’. Tesla still holds $2.5 billion worth of bitcoin.