Microstrategy Boosts Bitcoin Holdings Despite Quarterly Losses
Microstrategy Inc. (Nasdaq: MSTR) released its second-quarter earnings statement Thursday. The firm, which holds the largest stash of bitcoins among corporations, added more to the hoard. In a post on social media platform X, Thursday, executive chairman of Microstrategy, Michael Saylor wrote:
In July, Microstrategy acquired an additional 169 bitcoins for $11.4 million, bringing its total bitcoin holdings to 226,500.
It was disclosed during the call that MicroStrategy acquired 12,222 bitcoins since the start of Q2 for $805.2 million, at an average price of $65,882 per bitcoin. As of July 31, the company doled out $8.3 bln to gather 226,500 bitcoins at an average price of $36,821 per coin.
According to CEO Phong Le, the company aims to maintain a “Bitcoin Yield” and increase it 4%-8% annually for the next three years. He further highlighted the growing support that bitcoin is getting from politicians and institutions, making them quite hopeful.
CFO Andrew Kang explained the financial steps taken to increase their bitcoin holdings. Microstrategy announced a 10-for-1 stock split effective August 7, which was also a part of news in Q2. According to Kang, the firm generated $800 million through the issuance of 2.25% convertible senior notes and redeemed $650 million in notes due 2025. Such gains were dampened by Microstrategy’s net loss of $102.6 million for Q2, primarily due to digital asset impairment losses.
Michael Saylor recently prophesied that by 2045, the bitcoin price would range between $3 million to $49 million, with a base case of $13 million. He believes in the ability of bitcoin to be the main treasury asset driving global economic stability and wealth growth. Saylor also opined that the majority of the world’s bitcoin should be owned by the U.S. government in order to enhance the strength of the U.S. dollar.