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MicroStrategy CEO responded to the criticism of the company’s continuous Bitcoin purchases despite a strong correction recently. He also answered some questions about the company’s take on investing in altcoins.
On Thursday, July 29, business intelligence firm MicroStrategy announced its second-quarter results for 2021. MicroStrategy CEO Michael Saylor said that his firm will continue investing and accumulating more Bitcoin.
Over the last year, MicroStrategy has amassed more than 100K Bitcoins on its balance sheet. Michael Saylor has been an ardent proponent of Bitcoin as has been backing the asset class tooth-and-nail. In the announcement of Q2 2021 results, he added:
“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.”
As of June 30, the current Bitcoin holdings of MicroStrategy are worth a massive $3.65 billion. The announcement further notes:
“As of June 30, 2021, the non-GAAP digital asset cost basis and non-GAAP calculation of the market value of MicroStrategy’s bitcoin were $2.741 billion and $3.653 billion, respectively, which reflects an average cost per bitcoin of approximately $26,080 and a market price per bitcoin of $34,763.47”.
For the second quarter, MicroStrategy also reported $125.4 million in revenue, a 13% increase in its performance year-over-year. However, the cumulative impairment losses by Bitcoin on its balance sheet stood at $689.6 million. On Thursday, shares of MicroStrategy (NASDAQ: MSTR) ended 3.35% negative at $625.01.
MicroStrategy Facing Accusations on Its Bitcoin Strategy
During the conference call on Thursday along with CFO Phong Li, MicroStrategy CEO Michael Saylor addresses some accusations over its Bitcoin strategy. The CEO is facing criticism for its massive purchases of Bitcoin despite the recent correction. However, Saylor doesn’t seem perturbed with the recent criticism. He said:
“Our macro strategy is to acquire and to hold Bitcoin. We’ll help explain Bitcoin to the regulators, to the public and to the media. We think acquiring Bitcoin at this time is going to be a wise move. We feel like there is a land grab right now to acquire as much as we can”.
Saylor added that he was very much satisfied with the investment. Besides, he added that there’s an improving economic environment for Bitcoin. He noted:
“The China exodus was a really good thing for Bitcoin. The result was a decentralization of mining throughout the world. Long term, the Westernization of Bitcoin is good for Bitcoin, the U.S. dollar and Western technology.”
Besides, the conference call, Saylor also faced the question of whether if the company will invest in other digital currencies like Ethereum.
“Our strategy is to focus on Bitcoin. I can plug Bitcoin into the entire digital economy and it makes everything better. Bitcoin fixes everything. The least risky, most diversified investment strategy is to simply hold Bitcoin,” replied Saylor.