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Author Topic: MicroStrategy Turns Profitable with Bitcoin and Plans for More Growth  (Read 198 times)
YUriy1991
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August 07, 2023, 06:12:52 AM
 #21

MicroStrategy has chosen Bitcoin as its primary reserve asset by releasing all Bitcoins used as collateral to secure loans and is also one of the top 5 companies that own the most Bitcoins in the world. It's extraordinary indeed, and that I think is inseparable from their belief in seeing Bitcoin as a trading strategy that has the potential to be supported by a digital asset environment that continues to grow, especially now. Well, for me one thing that impressed me was that they (MicroStrategy) integrated Bitcoin Lightning into their company's email address apart from being the main driving force of the market like the previous year.

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August 07, 2023, 06:20:07 AM
 #22

It is great to see that MicroStrategy is now benefitting from their confidence in Bitcoin. When the market was bearish and there were different predictions of the crash in the price of bitcoin Michael Saylor, was busy buying and promoting the coin.Congratulations to the company and I and the future will still be profitable.


Is MicroStrategy success with Bitcoin a sign that more companies will invest in cryptocurrency?

There will always be copycat investors. Some companies specialize in copying the investment strategy or decisions of other companies. Sometimes they make a profit from replicating other companies' financial policies, while they might experience loss sometimes. So I think some companies will consider buying Bitcoin because of the profit of MicroStrategy.

MicroStrategy has made huge profit from bitcoin and been the most successful bitcoin investor in the market.

Microstrategy could have made profits from bitcoin investment and still have more opportunities to make more because it has made some decisions that could turn in favour of their own interests, yet you must not forget the fact that we shouldn't concluded that microstrategy is the most successful bitcoin investor, if you have a Link to ascertain this you can provide.
I think @Sim_card means that MicroStrategy is the company with the highest Bitcoin holdings. According to some reports they own about 129,699 BTC in their portfolio.
https://www.google.com/amp/s/www.benzinga.com/amp/content/31211121
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August 07, 2023, 07:42:00 AM
 #23

Sorry, a bit childish question. I don't understand in this case, isn't MSTR stock a reflection of the valuation value of the company? When they sell large shares even almost change the company's voting rights just to increase the investment value in instruments that are not their "identity", what I imagine is the buyer of the last shares will make the bid price very high if Saylor wants a large number of shares sold back into his hands after realizing investment returns. That's the same as the company does not get any profit. Am I right?

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August 08, 2023, 07:52:31 AM
 #24

Pretty good news, but I think it glosses over the fact that this was a gamble. Speculation using company reserves, that, at one point, was in real danger of liquidation (even by his own admission). Don't be fooled into thinking this is ever a good strategy for any business to turn a profit from anything else other than what the business was meant to do.
And this is what the mindset of other CEO, this is gamble and they don't want to do is as what Michael Saylor does. Even Elon Musk have to liquidate something, although he has a excuse - but Twitter and needed some funds.

So for governments like El Salvador, it's really a risk and that's what the critics of Bukele to proved specially we are in the bear market. So in order for Saylor and his MicroStrategy to be profitable, he just have to wait for the next bull run and see how high it will go.

They don't need to, and they aren't (those who consistently do fail a lot, why do you think there are big scadals like FTX? because CEOs gamble).

The point here is, good for MS and Saylor but we don't need that good news for Bitcoin -- if anything it cements Bitcoin's misrepresentation as purely a speculative tool. I don't think Bukele does it the right way, but I also don't think it can be compared to Saylor...

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August 08, 2023, 09:19:29 AM
 #25

To say they turned profitable is a bit of a stretch. The recorded profit after tax of $22.2m was due to the $60.3 of tax credit they accounted in the 2nd quarter.
Their loss before tax was $38.1m and operating loss was $26.7m including "digital asset impairment losses" (which I'm guessing represents changes in BTC value) of $24.1m.
Adjusting for the mentioned impairment losses, they actualy did a bit worse than in the same quarter of 2022.

Link to the announcement:
https://www.microstrategy.com/content/dam/website-assets/collateral/financial-documents/press-release-archive/microstrategy-announces-second-quarter-2023-financial-results_08-01-2023.pdf

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