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MicroStrategy Reports Up To 52% Increase In Revenue, Says Might Sell Bitcoin In The Future

April 30, 2021 12:55 pm
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MicroStrategy Reports Up To 52% Increase In Revenue, Says Might Sell Bitcoin In The Future

MicroStrategy (NASDAQ:MSTR) reported a sharp increase in revenue as its CEO announced that the firm expects to buy more Bitcoin (CRYPTO: BTC) but could also sell some in the future.

What Happened: MicroStrategy's financial results for this year's first quarter show a 10.3% increase in total revenues, bringing them to $122.9 million, while the firm's product licenses and subscription revenues increased by 52.3%, reaching $31.3 million.

Michael Saylor, the company's CEO, said that the firm plans to continue accumulating Bitcoin.

“We continue to be pleased with our bitcoin strategy. We successfully raised more than $1 billion of additional capital in the quarter to expand our Bitcoin holdings, which now exceed 91,000 Bitcoins. […] We will continue to acquire and hold additional bitcoin as we seek to create additional value for shareholders,” the report says.

Later in the announcement, MicroStrategy admits it may consider selling at least a portion of its significant BTC holdings for-profit.

Why It Matters: Tesla (NASDAQ:TSLA)'s CEO Elon Musk revealed the automaker sold 10% of its Bitcoin holdings to prove its liquidity as an alternative to holding cash on its balance sheet.

See also: Largest Crypto Exchange Binance Adds Apple, Microsoft, MicroStrategy Stock Tokens

The electric car manufacturer's recently-released first-quarter earnings report showed that the company sold $272 million worth of Bitcoin, with a “positive impact” of $101 million on the company’s profitability. Tesla invested $1.5 billion of its balance sheet into Bitcoin in early February.

Price Action: MicroStrategy shares traded 1.99% higher, at $668.06 at press time.

Tesla stock traded at $706 with a 4.28% increase.

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