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Business intelligence firm MicroStrategy’s Bitcoin investment is paying off, with an estimated profit of $ 100 million.
According to the data published on October 27 by an independent cryptocurrency researcher, Kevin Rooke, MicroStrategy has earned more from its investment in Bitcoin (BTC) than through its business over the past three years, from the first quarter of 2017 to the second of 2020.
Rooke’s data proves this The business intelligence firm’s 38,250 Bitcoins, worth around $ 425 million at the time of purchase in August and September, were valued at over $ 525 million during the recent price hike to $ 13,745. According to the researcher, Microstrategy has generated just $ 78 million in net income from its business operations in the past three and a half years.
“Our recent decision to make Bitcoin our main treasury asset is the latest example of MicroStrategy’s adoption of virtual technologies,” the CEO said Michael Saylor on the company’s latest quarterly report. “Buying $ 425 million worth of Bitcoin during the quarter offers the potential for greater return potential for investors than holding those cash balances and has increased MicroStrategy’s overall visibility in the market.”
MicroStrategy initially bought 21,454 BTC in August for $ 250 million, adopting cryptocurrency as its main treasury asset. After the initial investment, the company bought an additional 16,796 Bitcoins for $ 175 million. Although the company added digital assets to its quarterly financial report for the first time in the third quarter of 2020, informó from a net loss of $ 14.2 million in revenue from its commercial operations. MicroStrategy said it will buy or sell more Bitcoins in the future depending on the treasury reserve policy.
Initially saying that “the days of Bitcoin are numbered” in 2013, Saylor has become quite the cryptocurrency bull. In the weeks following MicroStrategy’s initial $ 425 million investment, it appears that the CEO has adopted the mindset of a Bitcoin maximal by calling BTC one of the few “cryptocurrency networks”.
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