MicroStrategy CEO Michael Saylor has explained why the Business intelligence firm would keep expanding its Bitcoin portfolio amidst the Q2 loss the firm recorded on the digital asset.
Largely, it is safe to say MicroStrategy has made quick gains on its Bitcoin portfolio, however, the firm reported an impairment loss of approximately $700 million on its BTC investment in Q2.
The loss has not deterred the MicroStrategy CEO in any way as he pledges the firm would continue to buy Bitcoin.
MicroStrategy $700m impairment loss
In total, MicroStrategy holds over 105,000 BTC worth $2.051 billion since it began accumulating BTC in August 2020.
However, the substantial purchases completed during the second quarter of this year have resulted in a cumulative impairment loss of $689.6 million for the company, according to the Q2 report.
The losses are mainly because the price at which MicroStrategy bought BTC in the second quarter of 2021 was higher than the current price.
Ultimately, the firms Second quarter report accounted for a net loss of $299.3 million, i.e., $30.71 per share on a diluted basis.
We are pleased with the results – Saylor says on Q2 report
The firm CEO noted that despite the loss, the firm remains pleased he said noting that they intend to buy more.
“We continue to be pleased by the results of the implementation of our digital asset strategy. Our latest capital raise allowed us to expand our digital holdings, which now exceed 105,000 bitcoins. Going forward, we intend to continue to deploy additional capital into our digital asset strategy.”
While giving his reason on why the firm would not stop purchasing BTC, Saylor said “our point of view is being a leveraged, bitcoin-long company is a good thing for our shareholders.
He said this on Friday during a CNBC interview. Saylor said he sees buying the cryptocurrency right now as comparable to investing in Facebook in the social network’s early days.
Explaining further, he said the firm’s view is that soon, billions of people would have mobile devices plugged to Bitcoin and he only wants MicroStrategy to be there first.
He noted that Bitcoin has helped MicroStrategy’s core business intelligence software operations.
MicroStrategy has become famous after it started to buy and hold bitcoin, initially using cash on its balance sheet to acquire the digital tokens before turning to the debt market to make more purchases.