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MicroStrategy’s BTC Holdings Reach $5 Billion

MicroStrategy published its much-awaited financial results for the Q1 of 2021 following several Bitcoin investments during the period. The company now possesses around $5 billion worth of Bitcoin. As per the announcement, the company’s total revenues for the Q1 of 2021 were $122.9 million. Additionally, compared to the first quarter of 2020, this is a 10.3% rise. Further, its gross profit amounted to $100.4 million. This depicts a gross margin of 81.7%, a boost from 78% in Q1 2020.

As a component of MicroStrategy’s well-publicized bitcoin buying strategy, the company purchased 20,857 Bitcoins during the Q1 of 2021. The company bought them for a total of $1.086 billion, at an average purchase price of $52,087 per Bitcoin. Moreover, as per a recent post by the CEO of MicroStrategy, Michael J. Saylor, the business intelligence firm has 91,579 BTC. The company raised more than $1 billion in the latest quarter to extend its Bitcoin portfolio. He elucidated that the company was still satisfied with its approach to Bitcoin purchases, adding that it would be adding to its already prominent reserves.

MicroStrategy Expedited Acquiring Crypto in 2021

Further, Bitcoin, the world’s biggest crypto, is already up by over 80% since this year’s commencement. Bitcoin hit an ATH (all-time high) of around $64,600 on 14 April. However, it witnessed a correction currently. Bitcoin is now trading near $54,000 with a market cap of $1.02 trillion. MicroStrategy has been acquiring large amounts of Bitcoin for its treasury reserve since August 2020. The business intelligence firm accelerated its Bitcoin accumulation in 2021 as the firm acquired 19,452 Bitcoin in February 2021 for almost $1.02 billion in cash at an average price of $52,765 per BTC. Earlier this month, the company purchased approximately $15 million worth of Bitcoin to enlarge its portfolio.  

Moreover, it looks like the stock price of MicroStrategy has profited from the firm’s crypto allocation. It has risen to 405% after the bitcoin treasury program and 69% since the start of 2021. Saylor also highlighted strongly hosting ‘Bitcoin for Corporations’ through the first quarter on February 3-4. The event took place during the company’s annual MicroStrategy World conference. Some 8197 attendees from 6917 distinct companies attended the event. The company used its thought leadership in the crypto market to display how organizations can introduce digital assets into their balance sheet management.

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