Microstrategy is one of the best-performing stocks over the last quarter and gained by over 300%. This was after the company’s aggressive Bitcoin purchases in 2020 that saw it accumulate Bitcoin worth over $3 billion.
In its Q1 financials, the company announced that it holds 91,579 and got them at an average price of $24,311. In its financial report, the company stated that it could still add some more Bitcoin or possibly consider reducing it in the future.
According to the firm’s CEO Michael Saylor, the firm’s Q1 performance indicated that the company was now taking a double-pronged strategy. The first one is to generate revenues by doing regular business. The second one is to invest in Bitcoin.
The CEO added that this strategy was working considering that the last quarter was a good one for the business both in Bitcoin gains and profits from its software business.
Saylor added that they intend to buy more Bitcoin as a way to increase the company’s shareholder value in the future. Depending on the market conditions, Microstrategy can also consider selling some of its Bitcoin holdings in the future.
However, he noted that selling would not mean that they have lost faith in Bitcoin. He is more pro-Bitcoin than Gold as a store of value.
Besides, as Bitcoin matures as an investment, buying and selling will not be perceived through the lenses of believing in it or not. Tesla recently sold a portion of Bitcoin holdings, and it hasn’t had any adverse effects on the price of Bitcoin.