MicroStrategy’s Bitcoin holdings seem to be paying out more than your business

With Bitcoin’s rise above $13,700, the company’s BTC holdings are currently worth more than $525 million.

The investment in Crypto Engine from the business intelligence company MicroStrategy is bearing great fruit, with an estimated profit of $100 million.

According to data published on October 27 by independent cryptomontage researcher Kevin Rooke, MicroStrategy has earned more from its investment in Bitcoin (BTC) than through its company over the past three years, from the first quarter of 2017 to the second quarter of 2020.

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Rooke’s data shows that the 38,250 Bitcoin from the business intelligence company, worth approximately $425 million at the time of purchase in August and September, was valued at more than $525 million during the recent price hike to $13,745. According to the researcher, Microstrategy only generated USD 78 million in net income from its business operations in the last three and a half years.

„Our recent decision to make Bitcoin our top treasury asset is the latest example of MicroStrategy’s adoption of virtual technologies,“ said CEO Michael Saylor about the company’s latest quarterly report. „The $425 million purchase of Bitcoin during the quarter offers the potential for greater return for investors than holding such cash balances and has increased MicroStrategy’s overall visibility in the marketplace.

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MicroStrategy initially purchased 21,454 BTCs in August for $250 million, adopting crypto-currency as its primary cash asset. After the initial investment, the company purchased an additional 16,796 Bitcoins for USD 175 million. Although the company added digital assets to its quarterly financial report for the first time in Q3 2020, it also reported a net loss of $14.2 million in business revenue. MicroStrategy stated that in the future, it would buy or sell more Bitcoin depending on the Treasury’s Reserve Policy.

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Initially claiming that „Bitcoin’s days are numbered“ in 2013, Saylor has become a bull in the kryptonie. In the weeks following MicroStrategy’s initial $425 million investment, it seems the CEO adopted the mentality of a Bitcoin maximalist by calling BTC one of the few „crypto networks.