MicroStrategy, led by CEO Michael Saylor, has continued its aggressive investment strategy in bitcoin despite significant losses. The firm recently added 6,067 BTC, valued at $167 million, to its digital asset portfolio, bringing its total holdings to 158,400 BTC, valued at over $5.4 billion as of Thursday. The move reflects the firm’s unwavering commitment to bitcoin as a hedge against inflation amid prospects for increased institutional adoption.
Despite software revenue growing 3% to $129.5 million, beating Bloomberg analyst estimates, MicroStrategy’s focus on cryptocurrencies resulted in a quarterly loss of $33.6 million. This brings the company’s total losses to over $2.2 billion, up from $27 million last year to a staggering $143.4 million.
MicroStrategy’s CFO, Andrew Kang, maintains the company’s commitment to bitcoin despite these market volatility losses. He highlighted the company’s strategic moves to secure and grow its bitcoin holdings, which have increased by 6,067 bitcoins since Q2.
The firm’s recent investment of $5.3 million for an additional 155 bitcoins was in response to the increase in bitcoin’s market value. The move comes after the firm’s initial $250 million investment in August 2020, and is in line with major events in the bitcoin landscape, such as the upcoming fourth bitcoin halving and the SEC‘s pending decision on the first spot bitcoin ETF.
Saylor argued that investing through MicroStrategy offers advantages over ETFs due to potential fees, despite the looming threat that the likely approval of bitcoin ETFs by the SEC could undermine MicroStrategy’s position as the go-to investment for bitcoin exposure and lead to a potential share price decline.
