MicroStrategy Q2 Financials Reflect Losses Due to Crypto Market Crash
MicroStrategy’s second-quarter financial results show a loss in its bitcoin investments, but the company will continue to amass the cryptocurrency.
Business intelligence firm MicroStrategy has published its financial results for the second quarter of 2021, logging a revenue growth of 13%. The company saw some losses in its bitcoin holdings, brought on by the market’s slump in the second quarter. MicroStrategy, which has grown in the public eye for its investments in bitcoin, saw its shares drop by 3.35% today.
MicroStrategy’s total holdings amount to 105,085 BTC, which is worth over $4 billion at press time. CEO Michael Saylor, who has become a staunch bitcoin proponent since the company’s foray into the market, said that the firm was pleased by the results of its digital asset strategy.
The non-GAAP digital asset cost basis was $2.741 billion, at a price of approximately $26,080, as opposed to the non-GAAP calculator of market value which was $3.653 billion at a price of $34,763.47. Bitcoin has had a rollercoaster ride since MicroStrategy began investing in BTC in August 2020. The company’s holding value has swung dramatically in that time, seeing a strong bear market and a deep slump.
But the market’s actions in the past few months will not deter Microstrategy from investing in more bitcoin. The company said that it will continue to amass the cryptocurrency. Microstrategy holds the acquisition and holding of BTC as a major part of its corporate strategy, believing it acts as a dependable store of value.
MicroStrategy still supportive of bitcoin
MicroStrategy most recently purchased bitcoin in June 2021, adding over 13,000 BTC to its reserves. It even went so far as to sell $1 billion of stock to buy the asset, signifying how confident it is.
The repeated investments in bitcoin have brought the spotlight onto MicroStrategy, with its CEO Michael Saylor being the face of the company’s strategy. Saylor has on several occasions touted the importance of bitcoin, having said that the asset would “devour gold” shortly after the company’s first investment.
Saylor also plays an important part in the Bitcoin Mining Council, which he hosted in May this year. The council saw miners agree to promote the usage of green energy and sustainability.
Should BTC eventually become the digital gold that so many promote it to be, then it could pay off very handsomely for the company.
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