The business-intelligence software company MicroStrategy recently revealed that they had added 9000 more Bittocins to their fund, taking the total number to a staggering 114.042. With so many Bitcoins in its holding, MicroStrategy is now a big crypto market player in its own right. It alone has the power to radically alter the prices of Bitcoin in the short or long run.
According to the official statement, the company raised money for buying 9000 additional Bitcoins through their new at-the-market equity offering. At Bitcoin’s present price, MicroStrategy holds BTC worth more than $7 billion. However, it would come as a shock to many since MicroStrategy’s total market capitalization is at roughly $7.4 billion. However, additional taxation rules and expenses result in a lower value of the actual BTC holding. MicroStrategy’s carrying value of Bitcoins is $2.046 billion, including cumulative impairment losses of $754.7 million. As the present accounting rules are for digital assets, companies have to declare an impairment if the price of an asset falls below the price at which the company bought it. CEO of MicroStrategy Michael Saylor made it clear that the company has present plans of only buying Bitcoins and not selling. According to him, it is an amazing long-term investment instrument.
Official statements also made it clear that MicroStrategy will continue raising funds to acquire more Bitcoins. CEO Michael Saylor added that the launch of Bitcoin ETFs is a good move for bringing in more institutional investors. As the prospects around crypto keep growing, MicroStrategy is becoming one of the most influential players in the Bitcoin market.
