Max Keiser, a famous Bitcoin (BTC) enthusiast who works for the president of El Salvador, recently made some rather grand statements about MicroStrategy.
Keiser said that the only limitation is the ceiling when it comes to MicroStrategy’s stock price. This is in the wake of the company’s latest move to buy Bitcoin, and its stock has risen tremendously within the past year.
MicroStrategy Acquires More Bitcoin, Holding 226,500 BTC
The company’s CEO, Michael Saylor, and his company, MicroStrategy, have acquired more Bitcoins and now hold 226,500 BTC. In June, they purchased an additional 169 bitcoins for $11.4 million to their current stock. The investment in Bitcoin is equal to about $14.66 billion, and the average purchase price per BTC is $36,821.
Investors and analysts are still focused on MicroStrategy’s Bitcoin strategy. Thus, the company has invested $8.3 billion in Bitcoin to date. This decision to buy more Bitcoin is based on the conviction that the virtual currency has a bright future.
Michael Saylor regularly presents Bitcoin as a vital tool for MicroStrategy’s development. His strategy has entailed using the company’s assets to buy more Bitcoin, making MicroStrategy a unique business organization with different practices from conventional business strategies.
MicroStrategy Posts $103 Million Loss This Quarter
Even while buying a large amount of Bitcoins, MicroStrategy posted a net loss of nearly $103 million in the second quarter. This is a significantly lower figure than the $22.2 million profit made in the same period of the previous year. The losses were mainly attributed to an impairment charge of $180.1 million pertaining to Bitcoins.
MicroStrategy’s share price was down 6.5% in the last trading session. This drop happened before the company released its second-quarter earnings. In this case, both the stock and cryptocurrency sectors of the market were factors in this decline.
Nonetheless, MicroStrategy’s stock price has soared in the last year and tripled after the recent decline. This growth is equivalent to the increase in the cost of Bitcoin, which doubled within the same time frame. This rise seems to have been informed by the company’s strategic direction towards cryptocurrency, particularly Bitcoin.
Michael Saylor Highlights Bitcoin’s Impact on Stock Performance
In April this year, MicroStrategy issued $500 million in debt to purchase more Bitcoins. The company later raised this amount to $700 million in another offering. These actions point towards that MicroStrategy wants to increase its Bitcoin holdings.
Cryptocurrency journalist Colin Wu added that MicroStrategy intends to raise about $2 billion more to increase its Bitcoin holdings. This could indicate that the company continues to have faith in cryptocurrency, especially Bitcoin. Particular attention should be paid to these tendencies, as investors and analysts are focused on them.
Recently, Michael Saylor explained how Bitcoin influenced MicroStrategy’s stock. He pointed out that the company’s stock has outperformed that of other tech firms in the market as a result of the company’s Bitcoin plans.
