MicroStrategy wants to raise more money for other business projects and buy more Bitcoin by selling up to $2 billion worth of shares. Even though the company lost money in the second quarter of 2024, it bought 12,222 Bitcoins, bringing its overall number of Bitcoins to 226,500.
The market is feeling bad because the U.S. government’s Bitcoin sell-off and weak economic indicators led to this move. In a statement with the U.S. Securities and Exchange Commission (SEC), MicroStrategy explained this plan. MicroStrategy wants to add more cryptocurrencies to its holdings. Michael Saylor is known for strongly supporting Bitcoin.
MicroStrategy’s second-quarter financial results showed a loss due to an impairment charge on its Bitcoin assets, which were worth about $13.77 billion. The plan was announced at the same time.
MicroStrategy bought 12,222 Bitcoins in the second quarter of 2024 for a total of over $805 million, or $65,880 each. MicroStrategy is now the public company with the largest Bitcoin reserve thanks to this purchase.
The president of the business, Phong Le, said that their Bitcoin strategy was “successful,” pointing out that the market value of their Bitcoin holdings has grown by 70% compared to how much they cost to buy.
The U.S. government’s $2 billion sale of seized Bitcoin and economic events like the Federal Reserve’s decision to stop rate changes on July 31 and a weak U.S. jobs report on August 2 have made the market stay pessimistic.
MicroStrategy’s choice to increase the amount of Bitcoin it holds shows that it still believes in the cryptocurrency’s potential as a valuable asset. This is in line with their long-term goals, even though the market is currently experiencing problems. This method is part of a bigger trend of institutions using Bitcoin, which shows that digital assets are becoming more accepted in traditional finance.
Bitcoin (BTC) dropped below $50,000 on Monday because investors were afraid the US economy would go into recession.
