Bitcoin Purchases Persist Despite Billion-Dollar Losses: Strategy Spends $21 Billion Again
Hear Ye, Hear Ye! The Bitcoin Saga of Strategy Inc.
In a rollercoaster quarter for corporate Bitcoin titan, Strategy Inc. (formerly known as MicroStrategy), the company took a whopping $4.2 billion hit—blame it on Bitcoin's tumbling value. The loss, worth $16.49 per share, was a far cry from analysts' modest expectations of a mere penny loss.
The main wound, a $5.9 billion reevaluation loss, came from the dicey Bitcoin market. Undeterred, Strategy showed its resilience by pouring another $21 billion into the cryptocurrency market through a share offering reminiscent of a previous stint.
As of the quarter's end, Strategy had a mighty 528,185 Bitcoins on its books. With purchases made in April, this number climbed to a staggering 553,555 BTC, which translates to nearly 2.6% of all existing Bitcoins. Since 2020, the company has inked deals worth an eye-popping $37.9 billion, with an average Bitcoin price tag of $68,459. At present, the value of Strategy's Bitcoin empire exceeds $53 billion.
Unfazed by the red numbers, Strategy upped its game. It set its sight on a 25% Bitcoin yield per share and a total portfolio gain of $15 billion, compared to previous targets of 15% and $10 billion, respectively.
While the Bitcoin rollercoaster caught everyone's attention, investors are also scrutinizing the health of Strategy's core software development business. The revenue from this sector plummeted by 3.6% year-over-year to $111.1 million.
In the face of criticism, CEO Phong Le held his ground, proclaiming that the Bitcoin-buying strategy serves the best interests of shareholders. He proudly declared Strategy as the torchbearer of a brand-new financial model.
Need a loan? Strategy has got you covered, with consumer loans, auto loans, business loans, mortgages, deposits, credit cards, debit cards, new car leasing services, used car leasing services, and business car leasing services. All in a day's work for Strategy, the Bitcoin trailblazer.
[1] - Compare-crypto.com[2] - Bitcoincola.com[4] - Thebalance.com[5] - Blockchain.news
- Strategy Inc., known for its aggressive Bitcoin strategy, recently invested an additional $21 billion in the cryptocurrency market, making it the owner of approximately 553,555 Bitcoins.
- As the average price of Bitcoin acquired by Strategy since 2020 is $68,459, the value of its Bitcoin empire currently exceeds $53 billion.
- Unfazed by the recent decreasing average in finance and business, Strategy aims to boost its Bitcoin yield per share to 25%, indicating a $15 billion total portfolio gain, compared to previous targets of 15% and $10 billion, respectively.
- While technology attracts attention with volatile Bitcoin markets, investors also observe the company's core software development business, where revenue dropped by 3.6% year-over-year to $111.1 million.
- Under the leadership of CEO Phong Le, Strategy offers a variety of loan services, including consumer, auto, business, mortgage, deposit, credit card, debit card, car leasing, reinforcing its position on the forefront of a new financial model.
