Michael Saylor, who recently stepped down as CEO of software company MicroStrategy (MSTR) remains a strong supporter of the bitcoin renaissance.
His latest tweets show that this evangelist’s faith in the most popular cryptocurrency remains strong despite the market crash. Bitcoin (BTC) has lost nearly 68% of its value since it hit an all-time high of $ 69,044.77 on November 10. Currently, BTC is trading around $ 22,375.99, according to the data company CoinGecko.
“#Bitcoin only,” Saylor posted to his 2.6 million Twitter followers on September 12.
The day before he had posted an almost similar message, reaffirming his loyalty to the token.
“#Bitcoin Any Given Sunday,” the billionaire said.
Sell stocks to buy Bitcoin
If Saylor is no longer at the helm of MicroStrategy, the bitcoin strategy of the company he co-founded in 1989 has not changed. The company plans to issue and sell up to $ 500 million in stock, according to a recent one regulatory filing.
The company retained the services of Cowen & Co and BTIG LLC to conduct this sale, which will take place in stages. MicroStrategy, however, has not provided dates on which the company intends to proceed with the transactions. What is striking is that MicroStrategy intends to use some of the money raised to continue investing in bitcoin.
“We intend to use the net proceeds from this offering for general business purposes, including the acquisition of bitcoin,” the company said. “As a result, our management will have broad discretion in applying the net proceeds of this offering and you will not have the opportunity, as part of your investment decision, to assess whether the net proceeds are used in a manner approved by you. . “
The company goes even further, reiterating that its bitcoin bet remains intact as many institutional investors have opted for caution over risky assets like cryptocurrencies at a time when the specter of recession looms.
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“We currently intend to withhold all of our future earnings, if any, to purchase additional bitcoins and to develop our business,” MicroStrategy She said in filing with the US Securities and Exchange Commission (SEC).
Tesla (TSLA) The electric vehicle maker, which was the second largest holder of bitcoin among major companies, liquidated nearly its entire portfolio in the second quarter of 2022.
“We have converted about 75% of our bitcoin purchases into fiat currency,” the Model Y and Model 3 maker announced last July.
Tesla’s bitcoin wallet fell from 43,200 bitcoins at the end of the first quarter of 2022 to 10,800 bitcoins today, according to Bitcoin treasures. Tesla invested $ 1.5 billion in virtual currency on February 8, 2021.
Tesla’s withdrawal leaves MicroStrategy as the only big name on Wall Street to hold tens of thousands of bitcoins on its balance sheet. As of September 8, the software company’s wallet contained 129,699 bitcoins purchased at a total price of $ 3.977 billion, according to regulatory documents.
In view of the decline in the price of BTC, we can therefore logically state that the losses currently amount to around 1.2 billion dollars at the last check. MicroStrategy bought its bitcoins at an average price of $ 30,664 per unit.
The company said it took $ 2 billion of BTC-related asset write-down charges in the second quarter, which weighed on results. In fact, MicroStrategy posted a net loss of $ 1.06 billion in the second quarter.
MicroStrategy shares affected by the evolution of bitcoin prices have fallen 52% since January.
“Our bitcoin acquisition strategy exposes us to various risks associated with bitcoin,” says the company. “The fluctuations in the market price of bitcoin, which can be influenced by highly uncertain regulatory, commercial and technical factors, and the associated devaluation expenses that we may incur as a result of a decrease in the market price of bitcoin below the value at which our bitcoins are shown on our balance sheet, each of which can significantly affect the market price of our Class A common stock.