Even though MicroStrategy has lost money, its net revenue for the second quarter of 2021 was USD 125 million. Michael Saylor says that it is risky to lend Bitcoin because of regulatory problems, audits, and legal and accounting problems.
Michael Saylor announced that MicroStrategy had purchased 3,907 BTC for around USD 177 million during the third quarter of this fiscal year. The CEO of the firm stated they acquired that quantity at an average of USD 45,294 per unit.
MicroStrategy’s shares have experienced a significant increase of up to 52% compared to the revenue during the first quarter. That was because the firm confirmed through Michael Taylor more future purchases of Bitcoin.
MicroStrategy Does Not Sell the Bitcoin It Has Bought, but Will Treasure It
Similarly, Saylor reported on Twitter that MicroStrategy Incorporated would not sell the Bitcoin it has acquired. He said they would treasure it for the long term to increase the value of its assets.
Currently, MicroStrategy owns a total of 108,992 BTC acquired at an average price of USD 26,769. The amount of Bitcoin that the company has is worth more than USD 5 billion.
Bitcoin has experienced an increase of 418%, compared to its price one year ago. The cryptocurrency is trading at around USD 49,300 and has accumulated a 9.5% gain in the last week, according to CoinGecko.
Regarding MicroStrategy’s shares, they started this year at USD 468.98 but are now trading at USD 715.50, appreciating by more than 152%. However, on February 9th, their price reached USD 1,272.94, their highest price so far.
MicroStrategy Has Made and Lost Money in the Last Months
In recent months, Bitcoin purchases have generated huge profits, as well as occasional losses, for MicroStrategy. The company reported it lost USD 300 million during the second quarter as the prices of BTC dropped.
Despite the amount of money MicroStrategy reported as a loss, not everything was negative for them. They also revealed that their net income for the second quarter of 2021 was USD 125 million. That represents an increase of 13.4%, compared to the second quarter of 2020.
The market experienced a setback that affected the company led by Michael Saylor. However, they say that will not take away their desire to continue acquiring and holding Bitcoin.
Michael Saylor Takes Custody of His Bitcoin and Does Not Lend It
MicroStrategy’s approach to Bitcoin and its secrecy regarding custody of the cryptocurrency has popularized Michael Saylor.
Regarding the risk of the company lending its Bitcoin, its CEO stated that he believes that counterparty risk is high. He explained that there is a regulatory problem, an audit, and legal and accounting issues.
The executive explained that obtaining 5% more per year implies assuming 100 times more risk and is ten times more complicated.
MicroStrategy made its first Bitcoin purchase in August 2020. Then, they acquired 21,454 BTC at USD 11,000 per unit, representing a total cost of USD 250 million.
By Alexander Salazar
