Michael Saylor’s Bitcoin bull company planned to trade its Bitcoin holdings to offset its loss.
Microstrategy is a publicly listed business intelligence company. Under the leadership of Michael Saylor, the company has been buying Bitcoin since Aug 2020. To this date, the company holds a total of 132,500 BTC. In 2022, Saylor stepped down from the CEO role to focus on the company’s Bitcoin holding initiatives, so that the company can generate passive income with a Bitcoin balance.
On 2 Feb 2023, Microstrategy released its Q4 2022 earning report and confirmed that the company is in a net $1.3 billion loss with Bitcoin holdings only.
The report confirmed that the company made some profit with its Bitcoin transactions in late 2022. Andrew Kang, the chief financial officer at Microstrategy, confirmed that the company will continuously do Bitcoin transactions this year also to offset its loss.
“We may consider pursuing additional transactions that may take advantage of the volatility in Bitcoin prices, or other market dislocations that are consistent with our long-term Bitcoin strategy,” the Microstrategy officer said.
Microstrategy co-founder Saylor said that the company compared the performance of different assets and noted that Bitcoin was most important in its benchmark since Aug 2020, after Microstrategy shares “MSTR” which rose 117% in the same time frame, as a part of Bitcoin buy plan.
Saylor noted that Bitcoin is a digital commodity and this is a big reason for the company to hold only Bitcoin as a haven.
“The only real haven for an institutional investor is Bitcoin. Bitcoin is the only universally acknowledged digital commodity, and so if you’re an investor, Bitcoin is your haven in this regard,” Saylor said.
It is worth noting that Microstrategy secured a $132 billion net profit in Q4 despite a loss in its share value by $21.93/MSTR & Bitcoin holdings. And this net profit is very high over the Wall Street expectations.