MicroStrategy says commitment to bitcoin despite loss-making quarter

MicroStrategy says commitment to bitcoin despite loss-making quarter

Analytics software provider MicroStrategy will continue to pursue a "digital asset strategy". Its CEO Michael Saylor stated this in a press release for its second-quarter earnings.

As of June 30, the 105,085 BTCs on its balance sheet were valued at $2.05 billion, with a cumulative impairment loss of $689.6 million (Q2 results: $424.8 million) on an average book value of $19,518 coins.

According to its own calculation methodology, the company earned $912 million on bitcoin purchases. The average purchase price of the coin was $26,080.

MicroStrategy acquired an additional 13,005 BTC worth approximately $489 million in June.

"We are pleased with the results of our digital asset strategy. We plan to continue to place additional capital in it," said Saylor.

MicroStrategy's April-June revenue was $125.4m (+13.4% YoY), with a loss of $299.3m compared to $3m a year earlier. The deterioration is due to the reflection of a "paper" loss on acquired bitcoins.

During the press conference, Saylor rejected the idea of revising its digital strategy by acquiring other cryptocurrencies.

"We are focused on bitcoin. You can connect the first cryptocurrency to the whole digital economy and it gets better. Digital gold solves all the issues. The least risky and most diversified strategy is to just hold this asset," he explained.

As a reminder, Tesla wrote down $23 million in the second quarter due to the negative dynamics of bitcoin.

Earlier, photo processing software developer Meitu recorded a loss of $2.6 million in the same period from the negative revaluation of the acquired cryptocurrency.

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