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MicroStrategy released its first-quarter report, unaffected by Bitcoin uncertainty

International software solutions company MicroStrategy released its first-quarter revenue report. Revenue is up slightly, and the company remains committed to bitcoin.

On May 1, MicroStrategy reported its financials for the first three months of 2023. The company disclosed net income for the first quarter was $461.2 million, or $31.79 per share on a diluted basis. In comparison, it posted a net loss of $130.8 million for the first quarter of 2022.

MicroStrategy is committed to Bitcoin

Total revenue for the period was $121.9 million, an increase of 2.2% compared to the first quarter of 2022. Furthermore, revenue from product licensing and subscription services for the first quarter was $36.2 million, an increase of 23.4% over the same period in 2022.

However, there was a slight decrease in revenue from product support and revenue from other services.

MicroStrategy President and CEO Phong Le comment The robustness of the enterprise business intelligence platform and the depth of its existing customer base continued to drive growth. He added that the company remains committed to bitcoin:

“The conviction in our Bitcoin strategy remains strong as the digital asset environment continues to mature.”

Moreover, the world’s largest digital asset gained 70% during the first quarter of 2023.

Andrew Kang, the company’s chief financial officer, explained that MicroStrategy strengthened its capital structure by reducing leverage by fully repaying its Bitcoin-backed loan in the first quarter.

Moreover, she bought another 7,500 BTC bringing the balance to 140,000. Its value is estimated at about $3.9 billion at current prices.

“Our goals in the enterprise analytics software space remain to grow our revenue and shift that business to the cloud,” he said.

In April, company founder Michael Saylor switched his company email address to a BTC Lightning address.

MicroStrategy stock didn’t react well to the news, dropping 6.37% on the day. As a result, MSTR fell to $310 in the after-hours trading period. However, the company has had a strong year, with share prices up 114% since the start of 2023.

MSTR YTD Prices Bolstered by Bitcoin – market surveillance

Bitcoin holdings back in the red

According to Bitcoin Treasury bondsthe company is down 7% on its BTC holdings as the total value on a cost basis equals $4.2 billion.

The company is the largest commercial owner of bitcoin. However, this huge number of 140,000 stacks is back in the red after the cryptocurrency market correction.

Bitcoin would need to return to $30,000 for MicroStrategy to get back into the black market again, but company executives seem unfazed.

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