MicroStrategy is the only enterprise analytics and mobility platform. The companies CEO is Michael Saylor...but you knew that already. What you probably didn't know was that MicroStrategy reported their fourth quarter earnings yesterday.
I wasn't really interested in what they had to say about their results. But because of the title of this post, I feel obligated to talk about it.
Michael talked about how we are in the age of the virtual wave and how they have successfully shifted their prospects and customers to their enterprise cloud platform. Revenue and income was flat to slightly up. However, now I know why they had so much cash to buy up all that Bitcoin...their gross profits are like 84%.
I was more interested in what they had to say about Bitcoin.
Regarding our bitcoin strategy, our pioneering decision to make bitcoin our primary treasury reserve asset has made MicroStrategy a thought leader in the cryptocurrency market and generated great interest in MicroStrategy as a corporation.
Going forward, we continue to plan to hold our bitcoin and invest additional excess cash flows in bitcoin. Additionally, we will explore various approaches to acquire additional bitcoin as part of our overall corporate strategy."
This past week, MicroStrategy bought another $10 million in Bitcoin. They now have 70,784 Bitcoins in their treasury. Based on their cost basis, their profits thus far are $1.3 billion.
The last three years, MicroStrategy avg. about $400k in revenue, each year. The stock price has avg. about $150. However, in six months they just made over a $1 billion in profits from Bitcoin. Although the stock is up over 4X in that period, the stock is trading at a 75% discount. Even if Bitcoin stays at $30,000, my conservative target for MicroStrategy remains $3000.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.