In its latest earnings report, business intelligence and software firm MicroStrategy has revealed and shared plans to shed some Bitcoins (BTCs) on its reserve in the near future.
In the company filing, for the Bitcoins it held, there were two major outcomes that were emphasized. The first one is that the company might buy up more of the cryptocurrency, and the second one is it might cash out some of its profits and eventually decrease its Bitcoin amount.
Back in August 2020, MicroStrategy made headlines when it initiated its first purchase of the digital currency, spending $250 million to buy more than 21,400 BTCs. The decision was reportedly part of its new strategy for its Treasury Reserve.
Shoring up Bitcoin holding
After the initial buy, the company, under the leadership of its chief executive officer Michael Saylor, went on to accumulate more Bitcoin. Last February, it issued convertible senior notes worth $1.05 billion to acquire more of the digital asset.
Now, MicroStrategy has a total of 91,579 Bitcoins on its balance sheet, with an average unit price of just above $24,300. Considering that the price of cryptocurrency today is more than double, the company has made a significant profit from its crypto holdings.
But the latest release from the company disclosed that it might stack up more, or reduce its staked assets, although there were no reasons or factors revealed that might influence the company’s direction.
Pleased with Bitcoin
“We continue to be pleased with our Bitcoin strategy. We successfully raised more than $1 billion of additional capital in the quarter to expand our Bitcoin holdings, which now exceed 91,000 Bitcoins,” BlockchainNews quoted MicroStrategy as saying.
MicroStrategy said it might buy additional Bitcoins and increase its overall holdings of the crypto or sell them and decrease its overall holdings of Bitcoin in the future.
Now, it’s a game of wait-and-see for the next move of the company towards the cryptocurrency.
Image courtesy of Cointelegraph News/YouTube