MicroStrategy made USD 103.6 million in the last 2 months thanks to Bitcoin. For its business activities in the last 3 years, it earned USD 78 million.
The company specializing in business intelligence MicroStrategy made higher profits in the last two months with Bitcoin (BTC) than in the last three years with its products and services.
MicroStrategy has accumulated 38,250 BTC, which it bought at an average price of USD 11,111.11. Its average purchase value was almost USD 424.9 million. At the time of writing this article, when a BTC is trading at USD 13,820, the amount of Bitcoin that MicroStrategy acquired is equivalent to USD 528.6, with a difference of USD 103.6 million.
However, MicroStrategy’s profit for the last three and a half years has been USD 78 million. Researcher Kevin Rooke reached this conclusion based on the company’s financial reports.
Bitcoin as a Catalyst to Generate Long-Term Value
In his latest financial statement, MicroStrategy CEO Michael Saylor explained that he decided to make Bitcoin the main reserve asset in his treasury as a way of adopting virtual technologies.
He added that buying Bitcoin for USD 425 million during the quarter offers greater return potential for investors than holding such balances in cash. Besides, he said that this action “increased the overall visibility of MicroStrategy in the marketplace.”
The executive hopes that the company’s “proactive management of the balance sheet”, with the consequent improvement in revenues, will serve as a “catalyst to generate substantial long-term value for shareholders.”
In the third quarter of this year, MicroStrategy (MSTR) shares on the NASDAQ reflected Saylor’s intentions as their price rose by as much as 56%. However, MSTR did not keep up with the recent rise in the price of Bitcoin and has fallen by almost 10% since October 23rd.
MicroStrategy CEO Also Invests in Bitcoin
On his Twitter account, Saylor announced that not only MicroStrategy owns Bitcoin as a reserve asset, but that he owns 17,732 BTC. He said that he made this purchase before his company did, letting them know them of the position in due course.
Saylor invested more than USD 175 million at an average price of USD 9,882. This investment, priced at USD 13,200 per Bitcoin today, has brought him almost USD 59 million in profit.
Even though no one knows for sure when he invested, it seems to have occurred between May and July. In that period, the price of Bitcoin remained lateralized in the range between USD 9,000 and USD 10,000.
No One Should Ignore Bitcoin
In 2013, Michael Saylor said that the days of Bitcoin were numbered. However, he now argues that the cryptocurrency is stronger than gold and even recommends investing in it.
Charles Edwards, Founder of Capriole Investments, wondered about the day when MicroStrategy would call itself an investment company, rather than a technology one.
According to Edwards, events like this “are sending a great message to the world: no one should ignore Bitcoin.” Likewise, he predicted that the FOMO (fear of being left out) will take over corporate giants, who will venture into the world of Bitcoin.
By Alexander Salazar
