Despite the recent impairment losses of $424.8 million in its Q2 report, MicroStrategy Inc., the business intelligence and mobile software company, has pledged to continue its support for the largest crypto asset, Bitcoin, by amassing more of it.
The pledge for continuous acquisition of more BTC by Microstrategy may have been possible because of Micheal Saylor’s — the CEO of the firm— belief in the digital asset.
The company, whose total holdings per its Q2 report was 105,085 in BTC is worth $2.051 billion, with an impairment loss of over $680 million recorded since acquired, has made roughly a billion dollars more from BTC expenditure. It is also interesting to note that the loss is only on paper as it only reflected the price of BTC as of the end of the second quarter.
The report stated that “we continue to be pleased by the results of the implementation of our digital asset strategy. Our latest capital raise allowed us to expand our digital holdings, which now exceed 105,000 bitcoins. Going forward, we intend to continue to deploy additional capital into our digital asset strategy.”
Tesla was also in the news last week when it published a Q2 report showing a $23 million impairment loss on its Bitcoin holdings. Companies are mandated by accounting rules to must report an impairment loss when the asset’s price drops below its cost basis.
MicroStrategy’s total revenue for Q2 stood at $125.4 million, and the figure represents a 13.4 percent increase from Q2 of 2020. Its gross profit improved by 4.2 percent compared to 2020, and its total stood at $102.3 million. However, its total loss for the quarter remains $299.3 million.