MicroStrategy Releases Q1 2023 Financial Report
On May 2, MicroStrategy, the publicly traded company led by Michael Saylor and known for holding the largest amount of BTC in the world, released its optimistic Q1 2023 financial report.
The company's losses have significantly decreased from $197.6 million in Q4 2022 to just $18.9 million in Q1 2023. This is a substantial improvement from the $170.1 million loss recorded in the same quarter the previous year.
Additionally, MicroStrategy purchased more Bitcoin during the last quarter, raising its total holdings to 140,000 BTC. The company also fully repaid its $205 million loan from Silvergate Bank, a crypto-friendly bank that ceased operations earlier in March. Remarkably, the repayment amount was reduced to $160 million, a 22% discount on the original loan value.
CFO Andrew Kang commented:
“We have strengthened our capital structure by reducing leverage and fully repaying our Bitcoin-collateralized loan. We also continued to manage our balance sheet strategy by acquiring an additional 7,500 Bitcoin during the quarter. We remain confident in our Bitcoin strategy as the digital asset environment continues to mature.”
Since @MicroStrategy adopted a #Bitcoin Strategy: pic.twitter.com/rrYTbvOkUS
— Michael Saylor⚡️ (@saylor) May 1, 2023
MicroStrategy has been enduring losses since June 2022. However, the value of its Bitcoin holdings broke even when Bitcoin rebounded to the $30,000 mark on April 11, as reported by Coin68.
The company remains steadfast in its long-term Bitcoin investment strategy. Last month, MicroStrategy made two additional purchases, increasing its total Bitcoin investment to 140,000 BTC, worth over $4.17 billion at the time of purchase. The first purchase (March 27) involved spending $150 million to acquire 6,455 BTC, while the second purchase (April 5) added 1,045 BTC for $29.3 million.
As of now, MicroStrategy’s average purchase price for BTC stands at $30,129, and its Bitcoin investment is valued at $3.94 billion, reflecting a loss of nearly 6%.
Historical Bitcoin Purchase Data for MicroStrategy. Source: Saylor Tracker
Moreover, the company’s stock rose 2% in after-hours trading following the financial report's release.
