MicroStrategy Inc., the enterprise-software maker better known as the largest public holder of Bitcoin, posted its first profit in nine quarters after registering a tax benefit related to its horde of the cryptocurrency.
(Bloomberg) — MicroStrategy Inc., the enterprise-software maker better known as the largest public holder of Bitcoin, posted its first profit in nine quarters after registering a tax benefit related to its horde of the cryptocurrency.
The Tysons Corner, Virginia-based company controlled by Bitcoin advocate Michael Saylor had a net income of $461 million, or $31.79 a share, in the first quarter. During the period, the rise in the price of Bitcoin allowed MicroStrategy to reduce a reserve, resulting in a one-time tax benefit of $453.2 million.Â
Revenue rose 2.2% to $121 million, beating the $119 million estimate that analysts surveyed by Bloomberg expected. The company took an impairment charge on digital assets of $18.9 million for the three months ended in March 31.
As Bitcoin rallied, MicroStrategy has seen its shares surge as well. They are up 118% so far this year. Bitcoin has risen by about 70% so far this year. Last year, Saylor relinquished his chief executive role at the company to focus on advancing his strategy for holding Bitcoin on MicroStrategy’s balance sheet.
Saylor began buying Bitcoin in 2020, to reduce the company’s holdings of cash. By the end of March, MicroStrategy held a total cache of 140,000 Bitcoins, according to its financials. The company added 7,500 Bitcoins in the quarter.
–With assistance from Tom Contiliano.
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