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MicroStrategy added 12,222 BTC in Q2, worth over $800 million.
The firm planned to invest an extra $2 billion in BTC, a potential 15% increase in its investment.
As a seasoned crypto investor with a knack for recognizing strategic moves, I find MicroStrategy’s BTC investment strategy quite intriguing. With their recent $11 million addition in July and the planned $2 billion extra investment, they are clearly betting big on Bitcoin.
In July, MicroStrategy disclosed that they had purchased an additional $11 million worth of Bitcoin, thereby boosting their second-quarter holdings to a total of 12,222 Bitcoins. This significant amount is valued at more than $800 million.
Currently, the Bitcoin development firm is in possession of approximately 226,500 Bitcoins, which they acquired for a total value of around $8.3 billion.
In response to the Q2 Bitcoin strategy, MicroStrategy’s president, Phong Le, praised its success, attributing it to a significant 70% increase in the company’s BTC holdings’ market value.
Following another prosperous quarter for our Bitcoin approach, MicroStrategy now owns approximately 226,500 Bitcoins. This current collection is valued at 70% more than our initial investment cost.
MicroStrategy seeking $2B BTC addition
It’s noteworthy that the company plans to boost its Bitcoin holdings by approximately $2 billion, which represents around a 15% expansion from its current stash, according to its Chief Financial Officer, Andrew Kang. He mentioned that they intend to finance this acquisition using equity capital.
As a dedicated researcher, I am diligently overseeing our equity portfolio, and we have initiated the process of filing a registration statement for a novel $2 billion At-The-Market (ATM) equity offering program. This move is aimed at maintaining flexibility in our capital structure, ensuring we can seize potential opportunities that may arise in the future.
Michael Saylor, the founder of MicroStrategy, further solidified his optimistic viewpoint on Bitcoin with a recent prediction that the value of a single Bitcoin could reach an astounding $3 million by the year 2045.
In summary, based on CryptoQuant’s data, MicroStrategy’s Bitcoin assets show an estimated profit of more than $7 billion before any sales are made.
In Q2, even though the company made significant investments in Bitcoin and refined its approach, it still recorded a net loss of $200 million during that time frame.
In their Q2 earnings statement, MicroStrategy noted a loss of $180 million on their digital assets due to a significant market decline during the same timeframe.
Currently, MicroStrategy’s stock (MSTR) remains above $1500, even after a recent market downturn and Bitcoin’s dip to approximately $62,000 on August 1st.
Based on year-to-date(YTD) performance, MSTR stood at 120% compared to BTC’s 45%.
It shows that MicroStrategy investors gained significantly higher profits compared to their peers who aimed for direct Bitcoin investment.
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2024-08-02 14:16