MicroStrategy Records Profit For the First Time Since June As Bitcoin Hits $30K

Business intelligence firm MicroStrategy finally recorded gains on its massive Bitcoin (BTC) investment as the digital asset hit a new 10-month-high of over $30,000 on Tuesday.

MicroStrategy in Profit After Roughly One Year

MicroStrategy, the largest publicly-traded corporate BTC holder, amassed 140,000 bitcoins worth roughly $4.17 billion in three years, regardless of the 2022 bear run.

The company started its BTC accumulation spree in August 2020 with a purchase of 21,454 BTC, making it the first public company to add crypto to its balance sheet.

Subsequently, the American firm embarked on a mission to buy and HODL many bitcoins. MicroStrategy took loans and raised funds all to acquire more BTC. Despite recording quarterly impairment charges that ran into millions of dollars in 2022, the business intelligence firm was hell-bent on continuing its shopping spree.

MicroStrategy’s Bitcoin stash reached 140,000 after its last purchase of 1,045 BTC for $29.3 million at an average price of $28,016. As of April 4, 2023, the firm had acquired its stash for an average of $29,803 per bitcoin.

MicroStrategy’s founder and executive chairman Michael Saylor remained bullish about Bitcoin amid its volatility and steep decline during the Terra-Luna fiasco and bankrupt crypto exchange FTX’s downfall last year.

As Bitcoin surpassed the $30,000 mark, MicroStrategy’s stash finally turned green, recording roughly $30 million in paper profit.

Bitcoin Outperforms Traditional Stocks in Q1

It is worth noting that MicroStrategy sold its bitcoins sometime last year. For the first time, the company sold 704 BTC for roughly $11.8 million in December to generate tax benefits. However, the business intelligence firm bought another 810 BTC two days later, replacing the sold coins.

Meanwhile, data collated by Finbold revealed that Bitcoin’s return on investment (ROI) outperformed that of five major stock indexes by an average of 170.32% in Q1. The digital asset saw returns of 69%, while Nasdaq, US Small Cap, S&P 500, and two other top indexes saw an average of 5.5% in returns.