American software and intelligence company MicroStrategy has confirmed a significant increase in revenue in today’s quarterly earnings report, with much of it being attributed to its Bitcoin purchases since December.
According to a press release, total revenues for the first quarter of 2021 were $122.9 million, a 10.3% increase on the first quarter in 2020.
In the first quarter of 2021, MicroStrategy purchased approximately 20,857 Bitcoin for $1.086 billion at an average purchase price of $52,087.
“We continue to be pleased with our bitcoin strategy. We successfully raised more than $1 billion of additional capital in the quarter to expand our bitcoin holdings, which now exceed 91,000 bitcoins.” The press release stated.
“We also hosted a very successful ‘Bitcoin for Corporations’ track at MicroStrategy World™ where we utilised our thought leadership in the cryptocurrency market to show how organisations can incorporate digital assets into their balance sheet management.”
In the first quarter, $MSTR had one of the strongest operational quarters in our software business in years, highlighted by 10% revenue growth and continued improvement in non-GAAP profitability. We continue to #hodl all 91,579 of our #bitcoin.https://t.co/Yrz8DGZkVV
— Michael Saylor (@michael_saylor) April 29, 2021
“We will continue to acquire and hold additional bitcoin as we seek to create additional value for shareholders.”
MicroStrategy CEO Michael Saylor has become a cult figure of the cryptocurrency industry following a number of bizarre tweets and comments on the demise of the US Dollar.
He launched a series of scathing remarks at journalist Laura Shin after she asked Saylor if MicroStrategy would sell their Bitcoin holdings during the inevitable bear market.
MicroStrategy’s share price remains 49% down from its peak of $1,316 in early February. It is however 468% up from this time last year.
For more news, guides and cryptocurrency analysis, click here.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.