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MicroStrategy CEO compares debt-financed bitcoin purchases to early Facebook investment

Despite its losses, MicroStrategy, Bitcoin’s largest corporate investor, has opted to continue investing in “digital asset strategies.” The present worth of its Bitcoin holdings, according to the software developer for the US intelligence industry, is $ 2.051 billion (about Rs. 15,255 crores), up from a loss of $ 689.60 million (around $ 5,130 million).

Source: thecoinshark.net

However, this is regarded as a paper (i.e., uncompleted) loss, as it is completely predicated on the cryptocurrency price at the conclusion of the second quarter. Chief executive Michael Saylor, who has frequently emphasised the importance of the world’s oldest currency’s survival, said he was “pleased” with the digital asset plan’s outcomes.’’

According to Saylor, the company’s new investment has enabled it to grow its digital assets to almost 1.05 lakh Bitcoins. “We intend to continue to spend more in our digital asset plan in the future,” he added.

MacroStr Strategy, a subsidiary of the firm, holds about 92,079 Bitcoins, according to the company.

Saylor emphasised his view on Bitcoin’s future on Friday, saying that his company’s goal is to invest in Bitcoin as long as Big Tech’s future is “digital asset.”

In a recent tweet, he claimed that Bitcoin is the fastest growing and most widely held financial asset in history, with more than 114 million individuals owning it.

Bitcoin currently has more over 114 million users, making it the world’s fastest-growing financial asset.

Saylor retaliated last month when another billionaire businessman, Elon Musk, ridiculed Bitcoin maximalists with a lightbulb joke.

In August of last year, Saylor made his first Bitcoin investment, acquiring 21,454 Bitcoins for $ 250 million (approximately 1,860 crores).

His firm contributed another $ 19,452 Bitcoins for around $ 1 billion in February of this year (approximately Rs. 7,440 crores).

How many Bitcoins MicroStrategy has?

As of March 1, MicroStrategy has seized 90,859 bitcoins worth $ 2.19 billion (approximately Rs. 16,290 crores). Saylor has transformed an obscure intelligence firm into a de facto Bitcoin ETF in less than a year.

MicroStrategy had a total of 105,085 bitcoins worth $2.7 billion as of June 30, the conclusion of the company’s second quarter. According to Coin Metrics, the bitcoin hoard was worth about $4 billion, based on Friday’s selling price of around $39,000.

In mid-April, Bitcoin reached an all-time high of almost $65,000 per token, coinciding with the euphoria around Coinbase’s big direct listing, which faded after an initial burst. Since then, Bitcoin has suffered, falling below $30,000 on two occasions.

Why is Saylor defending debt-financed bitcoin strategy?

Saylor defended MicroStrategy’s bitcoin strategy by claiming that it has aided the company’s core business intelligence software operations. Total revenues increased 13% year over year to $125.4 million in the second quarter. This is up 6% from the second quarter of 2019, when the coronavirus epidemic hadn’t yet wreaked havoc on the global economy.

Saylor described the company’s bitcoin affiliation as a “door-opener.” “It’s critical for people to know who you are. This is where the dialogue begins. It has proven beneficial to our corporate software business as well as employee morale.”



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