Today, MicroStrategy holds an estimated 105,085 BTC, which is worth just about $2.05 billion at today’s prices. The company did, however, suffer an overall impairment loss which amounted to $689.6 million ever since the Bitcoin had been originally acquired.
MicroStrategy is a mobile software and business intelligence firm that has recently made a pledge to purchase additional BTC despite the aforementioned impairment losses. In 2021’s second quarter alone, the losses were recorded to be $424.8 million.
A ‘paper loss’
Despite the massive losses, the company is insistent that this is only temporary and that as Bitcoin’s value and price increases once more, so too will the BTC held by MicroStrategy. As such, this is a loss only on paper and does not, in fact, represent any kind of realized loss. This makes sense, too, as if observed from a certain point of view, the firm’s profits appear to have overshadowed the expenditures (by a billion dollars) when it comes to the Bitcoin that had been bought.
Of course, one of the main reasons why the company is so adamant about continuously buying BTC is due to Michael Saylor (MicroStrategy’s CEO) and his belief that Bitcoin is a sound investment for the future. According to a recent report, the firm is satisfied by how well the Bitcoin investments have worked out thanks to the company’s approach pertaining to digital assets. From now on, the report added, there are definite plans of continuing to pour even more capital into this strategy that has seemingly worked out better than initially expected.
Michael Saylor still wants additional BTC
This year’s second quarter saw overall revenues for the company reach a total of $125.4 million, an increase of over 13% comparative to last year’s second quarter. Furthermore, the firm’s gross profit had equated to just over $102 million, which was representative of an 81.6% gross margin (an increase of 4.2% comparative to 2020). Regarding losses, the second quarter saw the company lose $299.3 million.
Still, the CEO has not changed his mind about the flagship crypto just yet and continues to want to accumulate as much BTC as possible as his strategy is to hold Bitcoin for the long run. However, in the event that Bitcoin’s price experiences a massive drop in the future, Michael shall revise his strategy. As the crypto market tends to experience heightened volatility quite frequently, time will only tell whether MicroStrategy’s plan will work out or not.