Business intelligence firm MicroStrategy’s investment in Bitcoin is paying off with an estimated profit of $ 100 million.
According to dates released on October 27th by an independent cryptocurrency researcher, Kevin Rooke, MicroStrategy has made more money from its investment in Bitcoin (BTC) than from its business for the past three years, from Q1 2017 to Q2 2020.
Rooke data shows that The business intelligence company’s 38,250 bitcoins, valued at around $ 425 million at the time of purchase in August and September, were valued at more than $ 525 million during the recent $ 13,745 price hike. According to the researcher, Microstrategy made only $ 78 million in net income from its business in the past three and a half years.
“Our recent decision to make Bitcoin our most important treasury asset is the latest example of MicroStrategy’s adoption of virtual technologies.” said the CEO Michael Saylor on the company’s latest quarterly report. “The $ 425 million purchase of Bitcoin during the quarter offers investors the opportunity for higher return potential than holding such cash balances and has increased MicroStrategy’s overall visibility in the marketplace.”
MicroStrategy initially bought 21,454 BTC for $ 250 million in August, adopting cryptocurrency as the Treasury Department’s main component. After the initial investment, the company bought an additional 16,796 bitcoin for $ 175 million. Although the company first included digital assets in its quarterly financial report in the third quarter of 2020, it is also ireported from a net loss of $ 14.2 million in revenue from operations. MicroStrategy stated that it would buy or sell more Bitcoin in the future depending on the Treasury Reserve Policy.
Say that at first “The days of Bitcoin are numbered” In 2013, Saylor has become a cryptocurrency bull. In the weeks following MicroStrategy’s initial investment of $ 425 million, the CEO appears took over the mindset of a bitcoin maximalist by calling BTC one of the few “crypto asset networks”.