MicroStrategy stock benefits from Bitcoin’s rise

The course of theaction from MicroStrategy is in increase by almost 120% in 2023a growth driven by the rebound from Bitcoin (+70%). The publisher also owes the BTC a tax benefit more than 450 million dollars.

All indicators are green for MicroStrategyMicroStrategy, the listed company with the largest Bitcoin holdings to date (140,000 tokens). The firm is reporting a strong first quarter profit.

In addition to its involvement in the crypto ecosystem, and in particular Bitcoin, MicroStrategy is a business intelligence software company. This activity allows the player to achieve a net profit of $461 million.

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Gain on asset depreciation

A year earlier, the company had recorded losses. This good performance is due in particular to Bitcoin. During the quarter, the price of the digital asset jumped by about 70%.

As a result, the value of MicroStrategy’s assets appreciated sharply. This momentum was reflected in a decrease in the reserve related to previous impairment charges on the same assets. Result: MicroStrategy benefits from a one-time tax benefit of $453.2 million.

The firm founded by Michael Saylor derives other benefits from holding bitcoins. Since the beginning of the year, the price of its stock in the stock market gained 118%. A correlation that can be explained by the 140.000 BTC kept by the listed firm.

179M spent to buy Bitcoin

In the past quarter, the publisher spent $179 million to acquire 7500 additional tokens. The strategy developed by the executives since 2020 is to convert cash and debt into Bitcoin.

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Even though Saylor has given up his seat as CEO, this policy is not in question. On the contrary, this voluntary withdrawal from the operational management of the software company allows its main shareholder to focus on the Bitcoin strategy.

“At the end of the day, it’s not easy to find the best strategy,” Saylor acknowledges. As for the bear market, it does not penalize BTC or the financial performance of the company, considers the boss.

BTC ownership: a competitive advantage

We have found that by simply acquiring and holding bitcoins, we can outperform our peers in the enterprise software industry,” says Michael Saylor.

He continues, “The regulatory environment for Bitcoin is improving. The capital coming out of the crypto-currency industry are heading to Bitcoin,” the maximalist further analyzes.

The latter has made a single sale since his first digital coin purchase in 2020. That sale in December 2022 was justified on tax grounds. The transaction involved 704 tokens sold for $11.8 million.

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