In summary
- MicroStrategy, the software development company, reported a loss in its latest quarterly results, but stressed that it is going all-in on Bitcoin.
- The company said it plans to raise $42 billion in capital over the next three years to buy more Bitcoin.
- MicroStrategy is already the largest holder of publicly traded Bitcoin, with 252,220 BTC, valued at $18.2 billion.
MicroStrategy, the software development company, today reported a loss in its latest quarterly results, but stressed that it is betting everything on Bitcoin.
In an announcement on Wednesday, the company (NASDAQ: MSTR) said it plans to raise $42 billion in capital over the next three years to buy more Bitcoin. The strategy is part of the company’s “21/21 Plan,” MicroStrategy CEO Pong Le said in a statement, in which $21 billion would come from capital raises and another $21 billion would be sold as fixed income securities.
MicroStrategy is already the largest holder of publicly traded Bitcoin, with 252,220 coins, valued today at $18.2 billion. Pong Le said the company has no plans to slow down and will continue buying Bitcoin.
“As a Bitcoin treasury company, we plan to use the additional capital to purchase more bitcoin as a treasury reserve asset in a way that allows us to earn a higher BTC yield,” he said.
In the company’s earnings release on Wednesday, MicroStrategy reported revenue of $116.1 million, reporting a decline of 10% year-over-year, missing analyst expectations. Its net loss was $340 million, compared with a loss of $143.4 million in the third quarter of last year.
Investors use the company’s shares as a proxy for Bitcoin: those who do not wish to purchase the Cryptocurrency through exchanges or exchange-traded funds (ETFs) can buy shares in the company to gain exposure to BTC.
The company first purchased Bitcoin in 2020 to maximize returns for shareholders and has not stopped purchasing the cryptocurrency since.
Bitcoin is currently trading at $72,209, according to CoinGecko data, after rising 9% in seven days.
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