Despite Bitcoin’s bumpy ride, MicroStrategy plans to buy more
While crypto-assets like Ethereum (ETH) have been getting most of the attention due to the upcoming upgrade called “The Merge”, the Bitcoin network itself has been grabbing some headlines. First, the top cryptocurrency showed signs of a breakout and then fell to $20,000 on September 13, indicating a volatile week. Second, despite heavy losses in its latest quarterly report, software firm Microstrategy (NASDAQ: MSTR ) has announced to buy more Bitcoins.
MicroStrategy Doubles Down on Bitcoin Bet
MicroStrategy has made it clear that it is one of the strongest supporters of Bitcoin, having committed billions in capital to the asset. It has been reiterated time and time again that Bitcoin is an asset that will have a place in the global economy in the future, and this has been hailed by crypto enthusiasts. Last week, it sought to sell up to $500 million in a stock offering to buy even more Bitcoin, showing that the bear market hasn’t wavered.
All of this has happened despite the fact that the company’s strongest advocate for BTC, Michael Saylor, is no longer CEO. It announced the separation of CEO and Chairman. This came after a $1 billion loss as disclosed in the second quarter financial results, due to the market route. It shows that the company fundamentally has a strong conviction about the asset. Saylor remains executive chairman.
The bear market and drop in Bitcoin’s price led MicroStrategy to take a $917.8 million write-down. It has 129,698 Bitcoins as of June 30, and the tanking of the cryptocurrency’s price also caused its stock value to drop by a significant amount. So far this year, MSTR shares have fallen by over 50%.
All in all, the sentiment around Bitcoin seems to be changing a bit. Whether that consolidates into an improvement remains to be seen, but MicroStrategy certainly thinks so.
Short-term hopes for Bitcoin
The market currently appears to be itching to break out of the slump it has suffered this year – or at least investors are. Several assets have been in the green after months of heavy losses, and buoyed by Ethereum’s merger, investors are hoping for a strong finish to 2022.
Institutional investors also seem to be optimistic about BTC. For example, Fidelity is considering offering Bitcoin to retail investors. Such moves indicate positive hopes for the asset in the short to medium term.
