The drop in Bitcoin prices continues to result in huge losses for Microstrategy. The company will announce its second-quarter earnings next week. How the giant Bitcoin whale plans for the BTCs in its hands is revealed on this date.
Tesla sold 75% of its holdings due to cash shortage
cryptocoin.com As you follow, Tesla, the CEO of Elon Musk, announced in its quarterly report that it sold 75% of its Bitcoins. Due to the drop in Bitcoin prices, Microstrategy continues to lose. Next week, the company will report its second-quarter earnings. From here, we will understand what plans the company has for the Bitcoins in its hands. Experts interpret how these sales will affect the markets.
What about Microstrategy’s Bitcoin strategy?
On the other hand, the company’s misuse of business information had an impact on the election, according to a recent report by Brent Thill of Jefferies. Thill mentioned that there may be a revision to Microstrategy’s Bitcoin strategy as well. This becomes even more important in light of the prolonged bear market mood that has been present in the cryptocurrency market in recent months. According to the details in the report:
We expect to hear an update on the management’s plans to continue investing in Bitcoin. The negative press is a result of MicroStrategy’s poor performance in the business intelligence division against a more challenging macroeconomic background.
The downgrade also negatively affected the company’s stock price in premarket trading. Shares of the software company fell as much as 6.50 percent in premarket trading.
Michael Saylor continues to hold strong Bitcoin faith
Bitcoin is strongly backed by Michael Saylor, the creator and CEO of Microstrategy. He has often expressed public support for the most popular cryptocurrency. Saylor recently predicted a significant long-term price increase for BTC. In previous interviews, he predicted that Bitcoin would reach one million dollars unless its price went to zero.
Given this context, a revision of Saylor’s company’s Bitcoin strategy is expected. Microstrategy is the world’s largest institutional Bitcoin holder with a total of 129,918 BTC. Over the past few years, the company had purchased Bitcoin at various stages for an average of $30,700. According to data from CoinMarketCap, BTC is currently trading at just over $21,000.
By estimates, the bear market cost the company over $1 billion in unrealized losses last month. Also, Saylor maintained his confidence in Bitcoin despite the setback, claiming that his business was planning for volatility.
