MicroStrategy on Thursday released its June quarter effects with better-than-expected earnings and earnings; however, it is your bitcoin assets that your percentage value and market capitalization.
The corporate, in spite of everything, is experiencing growth.
MicroStrategy has noticed that its profits decline over the more than six years; however, second quarter earnings rose from 13. 4% to $125 million or 10% in consistent currencies. of $248 million.
Non-GAAP or revenue-consistent, which excludes stock-based repayment and, more importantly, impairment losses and gains on its bitcoin assets, more than doubled from $8. 6 million in the June 2020 quarter to $21. 6 million this year. since a year ago, achieving $1. 72 consistent with a consistent percentage of $0. 60 a year ago.
MicroStrategy focuses on bitcoin
Michael Saylor, CEO of MicroStrategy, said: “We remain pleased with the effects of implementing our virtual asset strategy. Our new capital accumulation allowed us to expand our virtual assets, which now exceed 105,000 bitcoins. In the future, we intend to continue to deploy more capital into our virtual asset strategy. “
The company reduced its money from $530 million at the end of June 2020 to just $56 million at the end of June this year, and has raised more than $2 billion in debt to fund the acquisition of more than 105,000 bitcoins.
It is easy to see in the graph below that the percentage value of microstrategy is decided through bitcoin.
Market capitalization quadruples more, driven by debt
MicroStrategy’s market cap grew from $1. 5 billion at the end of 2019 to more than $6. 1 billion, while a portion, a little over $100 million, can be attributed to earnings growth, with a maximum of $4. 2 billion in bitcoin value.
December 2019
June 2021
Combined with:
Total business and bitcoins of $5. 8 billion
versus existing market cap of $6. 1 billion
The remaining $300 million is a mix of the company’s top valuation and the company’s bitcoin assets above its current value of $39,700 on Friday.
It’s July 2020
When MicroStrategy published its June 2020 quarterly effects on July 28, it announced a new capital allocation strategy. He said, “With over $500 million in money and money equivalents and short-term investments and an operating plan that plans to generate significant loose money in the future, MicroStrategy intends to return up to $250 million to its shareholders over the next 12 months. In addition, as a component of this capital allocation strategy, MicroStrategy will seek to invest up to an additional $250 million over the next 12 months in one or more investments or assets of choice, possibly coming with stocks, bonds, commodities such as gold, virtual assets such as bitcoin or other types of assets. Both methods will take into market conditions.
MicroStrategy and bitcoin price:
Bitcoin as a reserve asset of the Treasury
On August 11, 2020, the company announced that it had acquired 21,454 bitcoins for a total acquisition value of $250 million, adding fees and expenses, with a value of $11,653 consistent with bitcoin.
MicroStrategy and bitcoin price:
Exceeded $250 million target
On October 27, 2020, MicroStrategy announced that it had acquired a value of $425 million in bitcoins in the September quarter. MicroStrategy CEO Michael Saylor said, “Our recent resolution to make bitcoin our premier money reserve asset is the latest example of MicroStrategy’s adoption of virtual technologies. The acquisition of $425 million in bitcoins in the quarter offers the option of a greater chance of pullback for investors than maintaining such monetary balances and has greater overall visibility of MicroStrategy in the market. “
The company spent about $11,111 on its bitcoins, which were underwater as of September 30, but Bitcoin recovered and, on October 27, the company’s assets were in territory.
MicroStrategy and bitcoin price:
Debt convertible to bitcoin
On December 7, 2020, the company announced that it planned to factor $400 million in convertible debt with the goal of buying bitcoins. Four days later, it announced that it had raised $650 million maturing in 2025 with an interest rate of 0. 75% and an initial conversion rate of $397. 99 consistent with the stock.
MicroStrategy and bitcoin price:
More than a billion in bitcoins
On December 21, 2020, the company announced: “It had acquired approximately 29,646 additional bitcoins for approximately $650 million in money in accordance with its Treasury reserve policy, at an average value of approximately $21,925 consistent with bitcoin, adding fees and expenses. As of December 21, 2020, the Company has a total of approximately 70,470 bitcoins, which have been acquired for a total acquisition value of approximately $1,125 billion and an average acquisition value of approximately $15,964 consistent with bitcoin, adding fees and expenses.
MicroStrategy and bitcoin price:
Made one hundred percent with your bitcoins
In the December quarter effects announced on January 28 this year, the company announced: “We continue to plan to maintain our bitcoin and invest more surplus money flows in bitcoin. In addition, we will explore approaches to obtaining more bitcoins as a component of our overall trading strategy. »
This was probably due to the fact that MicroStrategy had doubled the price of the bitcoins it had purchased. As of December 31, 2020, he had charged an average of $15,964 for buying 70,784 bitcoins. As you can see below, when the company announced that its results, bitcoin exceeded $30,000.
MicroStrategy and bitcoin price:
More than a billion raised to buy bitcoins
On February 16, the company announced that it planned to factor $600 million as a component of a convertible offering. Three days later, it announced that it had raised $1,050 million owed in 2027 with an initial conversion value of $1,432. 46 consistent with the stock.
MicroStrategy and bitcoin price:
Pay more than a billion for more bitcoins
On February 24, the company announced that it had spent what it had just collected and used $1. 026 billion for 19. 452 bitcoins, which amounted to $52,765 consistent with bitcoin and increased its total to 90,351 bitcoins by $2,171 billion.
Michael J. Saylor, chief executive of MicroStrategy, said: “The company now has over 90,000 bitcoins, reaffirming our confidence that bitcoin, as the most followed cryptocurrency in the world, can serve as a trusted store of value. pursue our strategy of acquiring excess cash-flowing bitcoins and possibly from time to time, in accordance with market conditions, factoring debt or equity values into capital raising operations for the product’s goal of acquiring more bitcoins.
MicroStrategy and bitcoin price:
Issues $500 million in debt
On June 14, the company announced that it had contracted a debt of $500 million at an interest rate of 6. 125% maturing in 2028. In the press release, he said: “MicroStrategy intends to use the net proceeds from price ticket sales to obtain bitcoins.
MicroStrategy and bitcoin price:
It has more than 105,000 bitcoins
As the value of bitcoin fell, MicroStrategy announced on June 21 that it had acquired around 13,005 bitcoins for $489 million or $37,617 consistent with bitcoin, which has now given the company around 105,085 bitcoins with an average acquisition value of $26,080.
MicroStrategy and bitcoin price:
I provide independent studies on generation corporations and in the past I was one of the two analysts who decided to generate assets for Atlantic Trust (top level of Invesco)
I provide independent studies on generation corporations and in the past I was one of two analysts who decided to generate assets for Atlantic Trust (Invesco’s highest net worth group), a corporation with $15 billion under management. Internet Security Software Analyst for Smith Barney (where I wrote the industry’s most comprehensive report “Internet Security Software: The Ultimate Internet Infrastructure”) and Enterprise Server Hardware Analyst at Salomon Brothers. IBM in various sales and production positions. I have a bachelor’s degree in Industrial Engineering from Stanford University and a postgraduate degree in Economics from the University of Sussex, England.