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Business intelligence firm MicroStrategy’s Bitcoin investment is paying off in a big way, with an estimated profit of $ 100 million.
According to the data published On October 27, by independent cryptocurrency researcher Kevin Rooke, MicroStrategy earned more from its investment in Bitcoin (BTC) than it did through its actual business over the past three years, from Q1 2017 to Q2 2020.
Rooke data shows that the 38,250 BTC held by the business intelligence firm – worth about $ 425 million at the time of purchase in August and September – was valued at more than $ 525 million during the recent price hike in $ 13,745. According to the researcher, Microstrategy has only earned $ 78 million in net income from its business operations over the past three and a half years.
“Our recent decision to make Bitcoin our main reserve asset of treasure is the latest example of MicroStrategy’s embrace of virtual technologies,” said CEO Michael Saylor of 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 market visibility.”
MicroStrategy initially bought 21,454 BTC in August for $ 250 million, adopting cryptocurrency as its primary reserve 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, it also reported a net loss of $ 14.2 million in revenue from its business operations. MicroStrategy has stated in the future that it will buy or sell more BTC depending on the treasury reserve policy.
Initially stating that “Bitcoin’s days are numbered” in 2013, Saylor turned bullish on the cryptocurrency. In the weeks since MicroStrategy’s initial $ 425 million investment, it has apparently embraced a Bitcoin maximal mindset by calling BTC one of the few “cryptocurrency networks”.
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