Since incorporating Bitcoin in August 2020, MicroStrategy’s shares have grown by a whopping 166% while Bitcoin has increased by 143%.
The world’s biggest Bitcoin holder has recently published its financial report for the first quarter of 2023 where it highlighted its stock performance since adopting BTC.
MSTR not only posted robust growth but has outperformed other key indices [Nasdaq, S&P 500], Big tech [Apple, Microsoft], and enterprise software stocks [IBM, SAP].
Phong Le, President, and Chief Executive Officer, MicroStrategy reaffirmed its dedication to its Bitcoin investment plan saying, “The conviction in our BTC strategy remains strong as the digital asset environment continues to mature.”
“In Q1, we strengthened our capital structure by reducing leverage by fully repaying our bitcoin-backed loan. We also continued to strategically manage our balance sheet through the addition of 7,500 BTC in the quarter for a total of 140,000,” Andrew Kang, Chief Financial Officer wrote in the blog.
As of March 31, 2023, MicroStrategy’s digital assets [which included about 140,000 BTC] had a carrying value of $2.000 billion, reflecting cumulative impairment losses of $2.172 billion since acquisition and an average carrying amount per BTC of about $14,289.
Recently, the business intelligence firm integrated the Bitcoin Lightning Network [LN] into its CEO’s email address.
Built on top of Bitcoin, the LN is BTC’s layer 2 scaling solution designed to make payments cheaper and faster.
CEO Michael Saylor, a big-time BTC proponent who is reportedly worth over $1 billion and has amassed roughly 140,000 BTC [about $4 billion at current prices] through his software firm.
Last week, the king coin registered a mild uptick following concerns about a new banking contagion.
Despite the Drop From $30K, Bitcoin’s Market Cap Is Growing
BTC was up by nearly 6% in the span of 24 hours as First Republic Bank [FRB] stock fell over 50% on April 25.
Bitcoin has since retreated, opening the trading day at $28013, and is down by 2% in the daily index.
Market analysts say that there are still many encouraging market indications despite this gradual decline from $30,000 in price. One of them is the coin’s market cap dominance, which is once again growing and approaching June 2020 highs.
“Bitcoin is outperforming due to several reasons, including market consolidation, low trading volume, and banking uncertainty. I think a lot of institutions are excited about the crypto. I think that the risk-off narrative is resonating right now. Just like it did in 2021,” Joshua Frank, CEO of a research firm stated.