MicroStrategy, led by CEO Michael Saylor, has persisted in its aggressive investment strategy in Bitcoin despite facing significant losses. The company recently added 6,067 BTC, valued at $167 million, to its digital assets portfolio, bringing the total holdings to 158,400 BTC worth over $5.4 billion as of Thursday. This move reflects the firm's unwavering commitment to Bitcoin as a hedge against inflation amid prospects of increased institutional adoption.
Despite the growth in its software business revenue by 3% to $129.5 million, surpassing Bloomberg analysts' estimates, MicroStrategy's focus on cryptocurrencies has resulted in a quarterly loss of $33.6 million. This has pushed the company's total losses beyond $2.2 billion, escalating from last year's $27 million to a staggering $143.4 million.
MicroStrategy's CFO Andrew Kang maintains the company's commitment to Bitcoin despite these impairments from market volatility. He highlighted the firm's strategic moves to secure and expand its Bitcoin holdings, which have seen an addition of 6,067 bitcoins since Q2.
The firm's recent $5.3 million investment for an additional 155 bitcoins was a response to the surge in Bitcoin's market value. This move came after their initial investment of $250 million back in August 2020 and is aligned with major events in the Bitcoin landscape such as the impending fourth Bitcoin halving and the SEC's pending decision on the first spot Bitcoin ETF (TSX:EBIT).
Saylor argued that investing via MicroStrategy offers advantages over ETFs due to potential fees, despite looming threats that the likely approval of Bitcoin ETFs by the SEC could undermine MicroStrategy's position as a go-to investment for Bitcoin exposure and lead to a potential share price decline.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.