Business analytics corporation MicroStrategy, which owns more bitcoins than any other corporation in the world, on Thursday posted its biggest loss of all time due to the huge collapse of cryptocurrencies in the last quarter, however, the company’s CEO, Michael Saylor, said it would. Continue to buy more volatile assets as a component of institutional investors’ strength.
In an after-sales release Thursday, Virginia-based MicroStrategy reported a loss of $299. 3 million in the current quarter, with a profit of $3 million in the current quarter last year, with cash inflows of about $125 million, up 13. 4% from the last quarter. last year.
Fueling its overall losses, the company revealed an impairment loss of $424. 8 million due to the decline in the price of its bitcoin assets in the quarter, whose cryptocurrency costs fell by 40%.
The price loss reflects a decrease in the price of the bitcoin eBook, however, it can be recovered if costs are recovered, which is not out of the question given the volatility of the currency and its resurgence beyond.
Alongside the results, Saylor touted the good luck of the corporate debt to be offered in June, after which the company bought an additional 13,005 bitcoins for $489 million in cash.
As of June 30, MicroStrategy owned about 105,085 bitcoins, worth about $4. 2 billion over Thursday’s costs of about $39,760.
Last month, MicroStrategy raised $500 million more than expected through the sale of bonds to get more out of the world’s largest cryptocurrency. In a sign of great interest from institutional investors, the company gained more than $1. 5 billion in orders for the offer, which it announced at a time when bitcoin costs were at their lowest level in a month, around $33,400.
“We remain pleased with the effects of implementing our virtual asset strategy,” Saylor said Thursday, noting the company’s most recent capital accumulation and adding, “Going forward, we intend to continue deploying more capital into our virtual asset strategy. “
Given their large investment in cryptocurrencies, MicroStrategy’s inventories tend to ride on bitcoin’s incredibly volatile value wave. Stocks have plunged more than 50% since February, when bitcoin sank after Tesla CEO Elon Musk, a staunch cryptocurrency enthusiast who has fueled volatility in the area. this year, that value seemed “a little high. “The cryptocurrency has fallen by around 30% over the same period, but like MicroStrategy, whose inventory has risen by 410%, its value has increased by 260% over the next year. Right now, the quarter is the largest since the dotcom era in 2000, when the knowledge mining company posted a loss of $168 million in the third quarter. That year, inventory rose nearly 2,500% before falling more than 95% when the broader market collapsed.
MicroStrategy owns more bitcoins than any publicly traded company, however, in its eponymous bitcoin fund, investment manager Grayscale owns 654,885 tokens, more than $26 billion on Thursday.
Bitcoin’s biggest sponsor expects a loss of $285 million after crypto collapse, but must still raise $400 million in debt to buy more (Forbes)
Bitcoin’s largest investor raises $500 million to buy more, exceeding expectations as crypto rises (Forbes)
I’m a journalist at Forbes and about markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I earned a double primary in business journalism.
I’m a journalist at Forbes and in markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I earned a double primary degree in business journalism and economics while applying to UNC’s Kenan-Flagler Business School as a marketing assistant and before Forbes, I spent a summer reporting on the Los Angeles personal sector for the Los Angeles Business Journal and wrote about North Carolina publicly traded corporations for NC Business News Wire. on Twitter @ Jon_Ponciano