Microstrategy Earnings: What Future Holds For Largest Bitcoin Holding Company

coingape.com 3 h    Reading time: ~2 m

Microstrategy, which continues to be the company with largest Bitcoin holding, is scheduled to report quarterly earnings with investors anticipating any comment on its crypto strategy. The company’s BTC holdings are currently incurring around 50% unrealized loss over the total investment made to purchase Bitcoin. Last week’s surge in Bitcoin (BTC) price came as a much needed relief to investors in the midst of the ongoing bear market rally.

Unrealized Loss On Microstrategy’s BTC Holding

However, the current range is way below the crypto market prices registered during last year’s bull run. A large section of Bitcoin investors are still trading in losses thanks to the prolonged bearish momentum in 2022. For a large part of 2022, the curve for Microstrategy Bitcoin holding followed a sideways trend with 50% overall loss over the investment. The unrealized loss might not have a huge bearing on the company’s prospects if it continues to hold BTC in the long term. The company reported a loss of over $1 billion in the second quarter of 2022 as the BTC price dropped significantly.

Apparently, the company previously led by Michael Saylor is in the Bitcoin game for the long term. It is evident from the fact that Microstrategy has been adding more assets to its BTC tally capitalizing on the price dips. In this context, it would be interesting to see if the company makes any comment on its Bitcoin strategy. Currently, Microstrategy is the largest institutional Bitcoin holder behind Marathon Digital and Tesla. Elon Musk led Tesla has a Bitcoin balance of 9,720 currently.

The Bitcoin Strategy

The business intelligence company had earlier this year had a change of face in the chief executive officer role. Michael Saylor, one of the strongest supporters of Bitcoin, stepped down from the role of CEO in August. However, Saylor is now continuing with the company in the capacity of an executive chairman. He is now focusing more on Microstrategy’s Bitcoin acquisition strategy and related crypto advocacy initiatives.

According to Bitcoin Treasuries, MicroStrategy is holding 130,000 BTC as of last month. The company made a small purchase of 301 BTC at the price of $19,851 on September 20. As of writing, BTC price stands at $20,592.99, up 0.56% in the last 24 hours, according to price tracking platform CoinMarketCap.


Updated: 11/01/2022 — 08:00

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