It appears that MicroStrategy has no plans to stop buying Bitcoin anytime soon, even though it already has significant holdings of the crypto asset. MicroStrategy CFO Phong Le recently revealed the firm’s current strategy, which involves continuously investing in BTC. The firm doesn’t seem bothered by the crypto asset’s consistent downtrend in value lately, and it doesn’t come as a surprise seeing as MicroStrategy’s previous investment ventures remain in profit.
MicroStrategy’s Strategy
When the firm initially started buying BTC, its strategy involved purchasing bitcoin and holding it, inputting the data on its balance sheet. According to the firm’s CEO Michael Saylor, MicroStrategy never planned on selling its assets in the short term. The firm quickly had the most extensive Bitcoin holdings among any publicly-listed company.
Now, Le repeats what Saylor said in the past: MicroStrategy still doesn’t plan on selling its Bitcoin. The firm plans on earning profit in other ways, and they want it to involve buying more BTC. According to Le:
For now, MicroStrategy holds about 124,391 BTC. This information was revealed to the public during the firm’s end-of-the-year filings with the SEC. There was even a point when the firm’s ROI for its Bitcoin purchases reached nearly 100%. Despite the recent BTC downtrend, MicroStrategy still has nearly $1 billion in profit thanks to its BTC investments.
The Firm Will Keep Buying BTC
Among other things, the firm’s CFO also revealed their Bitcoin buying strategy going forward. Naturally, they will keep purchasing BTC, though the question remains whether the firm will buy as much Bitcoin as it had back in 2021. MicroStrategy will keep holding its BTC purchases, though, like always.
The firm has been solely focusing on its crypto-related activities rather than being an enterprise software vendor in recent times. According to recent data, MicroStrategy has been recording continuous losses even though it has been profiting a lot from its crypto investments.
For instance, between 2020 and 2021, MicroStrategy’s core business recorded a whopping loss of $14.2 million. However, this figure grew even more in its end-of-the-quarter report, revealing that the company recorded a loss of up to $36.1 million.
