MicroStrategy plans to buy more Bitcoin even though it has seen a loss of $424.8 M in Q2 2021. As of now, they have 105,085 Bitcoins in their balance sheet and the value is estimated to be $2.051 billion. Now you might be wondering why will they buy more if they have faced losses? Well, the point is that the losses are not real. In other words, they are paper losses and are not realized. But in reality, their average buying price is still a lot less than the current price of Bitcoin.
Microstrategy’s announcement
The report in the recent financial results of the company said that Microstrategy will continue to use more capital for future purchases of digital assets. Even after the impairment loss, Microstrategy has been in profits for a long time just like Tesla that has also reported a $23 million impairment. The best part about this is companies don’t need to report profits until they sell but can report losses on a cost basis.
Talking about the financial report the company has seen total revenue of $125.4 million with a profit of $102.3 million but overall they suffered a loss of $299.3 million. So, it is kind of bold for Microstrategy to go on and accumulate an asset that is volatile and could add to their losses. The company’s share prices have also dropped significantly from last year after it started buying Bitcoins. But Saylor said if Bitcoin’s price is less in 4 years from what it is now he will change his strategy.
The big bull of the crypto market
Michale Saylor can be called the big bull of the crypto market as he is buying BTC for the long haul no matter what. His company has acquired BTC at every price in this bull run showing belief that it will be much higher than that in 4 years. He has never shown disbelief in the currency and has his own understanding and logic for his bullish outlook on the scenario. We have to wait and see if his decision turns out to be one of the best investments of the decade or is reported as the biggest fails.
What are your thoughts on MicroStrategy planning to buy more Bitcoin? And do you think it is a good idea that the company is taking so much risk? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.
Also Read: PayPal will expand its crypto service to UK next month
