The chief financial officer of MicroStrategy, Phong Le, has stated that the company will maintain with its Bitcoin buying strategy despite the market downturn.
Le made the statements in an interview with the Wall Street Journal this week, adding that the Bitcoin strategy is to “buy and hold” and that any excess cash flows or money raised will be channeled into more purchases.
When asked about selling by Bloomberg maintain week, company chief executive and Bitcoin bull Michael Saylor said “Never. No. We’re not sellers,” before adding “We’re only acquiring and holding Bitcoin, right? That’s our strategy.”
MicroStrategy still in profit
The company made its first Bitcoin (BTC) purchase in August 2020 while the asset was dealing at around $11,500. It has lengthy to buy more in 2020 and throughout 2021 as prices surged.
As of December 29, 2021, MicroStrategy held 124,391 Bitcoin (BTC) according to filings with the Securities and Exshift Commission (SEC). At current prices, the stash is worth around $4.47 billion mparallelg the firm the largest corporate holder of the asset.
According to BitcoinTreasuries, the dollar value basis of MicroStrategy’s Bitcoin (BTC) holdings is $3.75 billion that means the firm is still in profit to the tune of around $720 million, or about 16%.
According to the WSJ, the company is likewise considering buying Bitcoin-backed bonds if the market becomes more liquid. Le said this could happen in the next year or two before adding “we’re continually looking at other ways to be additive to our shareholders as it relates to Bitcoin.”
The SEC has sent a letter to MicroStrategy asking it to disclose Bitcoin (BTC) holdings in future filings rather than accounting for impairment losses. “Accounting is black and white, but disclosures tend to be gray,” said Le who agreed in principle with the regulator’s requests.
Tesla Bitcoin (BTC) profits dwindle
The world’s second-largest corporate holder of Bitcoin is Tesla that has 43,200 Bitcoin (BTC) according to BitcoinTreasuries. At current prices, the stash is worth $1.55 billion that is only slightly more than the dollar value basis price of $1.50 billion.
Tesla’s outspoken CEO, Elon Musk, has not mentioned whether the company would be buying or selling any more of the asset. Tesla changeed around 10% of its Bitcoin (BTC) stash in Q2, 2021, a change which boosted which quarter’s earnings by $272 million.
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