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Even at an almost billion dollar loss, MicroStrategy will buy more Bitcoin

MicroStrategy released its quarterly results on Thursday (29), with strong losses in Bitcoin (BTC). In total, the company accumulates a loss of US$ 689 million. Such loss is an unrealized loss as the company did not sell BTC.

Even at an almost billion dollar loss, MicroStrategy will buy more Bitcoin

Even at an almost billion dollar loss, MicroStrategy will buy more Bitcoin

However, the sharp drop did not discourage company CEO Michael Saylor. During a live with investors, Saylor stated that the company remains committed to buying more BTC. In addition, the company also intends to focus on educating companies and regulators.

MicroStrategy Announces Second Quarter 2021 Financial Results

MicroStrategy Announces Second Quarter 2021 Financial Results

“Our macro strategy is to acquire and keep Bitcoin. We will help explain Bitcoin to regulators, the public and the media,” says Saylor.

Additionally, the company disclosed the total debt contracted in the second quarter. $500.0 million in bonds were issued. The money was raised at a rate of 6.125% per annum, maturing on June 15, 2028.

The amount was fully used in the acquisition of 13,005 BTC in June. The purchase was $489 million. As a result, the company became the first to surpass the 100,000 BTC purchased mark.

To MicroStrategy shareholders, Saylor said he was pleased with the investment in BTC. The economist said that, despite the negative news, the economic environment is improving, a scenario that has not yet been reflected in the price.

Read more:

  • Amazon denies rumors and clarifies that it will not integrate Bitcoin as a payment method
  • Whales withdraw $1.3 billion in Bitcoin from Coinbase this morning
  • “Stop making trouble about it,” China tells the US about its digital currency
  • “We think acquiring Bitcoin at this point will be a smart move. We feel that there is a race and I fear that we have to acquire as much as we can. The exodus from China was really good for Bitcoin. The result was a decentralization of mining around the world. In the long run, westernizing Bitcoin is good for Bitcoin, the US dollar and Western technology,” says Saylor.

    In the end, Saylor was asked if MicroStrategy plans to acquire other cryptocurrencies, such as Ethereum (ETH). He did not respond directly, but pointed out that, so far, the company’s strategy is to focus on investing in BTC.

    The other areas of the company helped to reduce the loss. Total revenue for the second quarter of 2021 was $125.4 million, an increase of 13.4% compared to the second quarter of 2020.

    Product licenses and subscription services revenue generated a profit of $32.5 million, an increase of 42.3% over the same period in 2020. Finally, the company’s total result was a loss of $299 million.

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