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MicroStrategy to Buy Bitcoin More Despite Q2 Impairment Loss

The NASDAQ-listed software giant MicroStrategy has seen a total impairment loss of nearly $700 million in Q2 2021 from its massive bitcoin investments. The company promised to increase its bitcoin investments and double down on the paper.

MicroStrategy’s Q2 BTC Impairment Loss

Michael Saylor’s brainchild has become one of the largest holders of bitcoins, with over 105,000 coins accumulated in the span of a year. However, the substantial purchases completed during the second quarter of this year have resulted in a cumulative impairment loss of $689.6 million for the company, according to the Q2 report.

Despite the positive revenue during this period from the non-bitcoin products, the operating expenses, which “included impairment losses on MicroStrategy’s digital assets,” have resulted in a paper loss of $424.8 million.

However, Saylor did not let this deter him as he assured that the firm does not intend to alter its BTC strategy.

” We are pleased with the outcomes of our digital asset strategy implementation. Our latest capital raise allowed us to expand our digital holdings, which now exceed 105,000 bitcoins. Going forward, we intend to continue to deploy additional capital into our digital asset strategy.”

It is worth noting the company has not yet sold any of its BTC. This means that losses are only paper-based and not real.

MicroStrategy, and Bitcoin: A Historic Years

As mentioned above, the love story between the NASDAQ-listed company and the primary cryptocurrency began in the summer of 2020 when the firm announced its first purchase. Saylor later explained that it was the result of extensive research on suitable assets during times of economic uncertainty.

Since then, the organization has used every possible chance to buy more – from relatively smaller purchases of $10 million to whopping amounts of $1 billion at once.

Saylor and the company launched BTC-oriented events for corporations and retail users, MicroStrategy became a node on the Bitcoin network, and non-employee executives started receiving funds in the cryptocurrency instead of cash. We must not forget that bitcoin was the company’s reserve asset in treasury.

This last part caught the attention of many because it was very revolutionary at the time. A popular crypto analyst, ecoinometrics, highlighted the event in a chart that shows the performance of BTC and MicroStrategy stocks over the same time period. The graph below shows that the first two have outperformed the stock index.

MicroStrategy Performance


Jul. 27, 2021

Since the start of their #Bitcoin treasury program: $MSTR +406%$BTC +227%$NASDAQ +39.1% pic.twitter.com/Ti5Hr3PlOH

— ecoinometrics (@ecoinometrics) July 27, 2021

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Former Coinbase Business Developer: ‘There Wasn’t a Long-Term Case for Bitcoin Payments’

Nick Tomaino, a former business developer and marketing lead at Coinbase, explained how the idea of bitcoin for payments gradually lost its relevance in the market. Tomaino detailed that Coinbase rode this premise back in 2014 to raise $125 million in two funding rounds, but it was quickly clear that there was not a case [……
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Japanese Corporation Metaplanet Acquires More Bitcoin, Stock Price Soars

Metaplanet, a publicly traded corporation on the Tokyo Stock Exchange, has announced an investment of 23.351 bitcoins, with an average purchase price of 10,706,180 yen per BTC, totaling 250 million yen ($1.6 million). The company now holds 141.0727 bitcoins, with an average purchase price of 10,278,391 yen per BTC…
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Bitcoin

BTC slips amid poor debut for Hong Kong spot ETFs

Bitcoin fell to under $62,000 after spiking past $64,700 earlier as Hong Kong spot Bitcoin and Ethereum ETFs began trading. Data showed trading volumes hit just over $11 million, against expectations of over $3oo million. Bitcoin price fell below $62,000 again amid market reaction to less than encouraging numbers from the first day of trading…


  • Bitcoin fell to under $62,000 after spiking past $64,700 earlier as Hong Kong spot Bitcoin and Ethereum ETFs began trading.
  • Data showed trading volumes hit just over $11 million, against expectations of over $3oo million.

Bitcoin price fell below $62,000 again amid market reaction to less than encouraging numbers from the first day of trading for much hyped spot Bitcoin and Ethereum ETFs in Hong Kong.

BTC was down about 1.4% at the time of writing, having touched lows of $61,587 across major crypto exchanges.

The benchmark cryptocurrency, which has struggled to reclaim key levels since its recent halving event, was seeing a 24-hour trading volume of $28.4 billion.

Bitcoin price and Hong Kong spot ETFs debut

Earlier, Bitcoin price surged to above $64,000 as the six spot Bitcoin and spot Ethereum ETFs went live in Hong Kong.

The flagship cryptocurrency rose to over $64,727 on US-based crypto exchange Coinbase. BTC also soared after reports Hong Kong approved the listing of the ETFs.

NEW: 🇭🇰 Opening ceremony of Hong Kong spot #Bitcoin ETFs 👏 pic.twitter.com/ux1eb5PqRn

— Bitcoin Magazine (@BitcoinMagazine) April 30, 2024

However, as data streamed in showing disappointing trading volumes and inflows, Bitcoin price took a hit. According to details of the six ETFs’s debut day, total trading volume reached just $11 million, not impressive given projections were much higher at over $300 million.

Bitcoin ETFs saw about $8.5 million while Ethereum ETFs recorded just $2.5 million on the first day. Ethereum price fell to $3,040.

Notably, the figures from Hong Kong are way lower compared to those recorded amid the enthusiasm that greeted the launch of spot Bitcoin ETFs in the US in January. On their debut, the US spot BTC ETFs raked in over $4.6 billion in trading volume.

The start to trading for the ETFs has not helped BTC price and BTC could face a slide under the $60k level if sentiment flips negative. On the upside, resistance at $65k remains critical and a breakout could see the bellwether digital asset soar towards its recent peak.


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