In a bold but not surprising move, Micro Strategy Co., Ltd. MSTR CEO michael saylor The company stated that Bitcoin BTC/USD as treasury reservesIt affects the whole world finance.
what happened: During the company's third-quarter earnings call on Tuesday, Saylor expressed confidence that Bitcoin has the potential to correct unhealthy balance sheets of both public and private companies.
“Bitcoin will fix the balance sheet. It will bring your stocks back to life. It will bring your options back to life. It will bring volatility,” Saylor said.
Saylor said he speaks regularly with executives from public and private companies and highlighted initiatives such as Bitcoin for Enterprise, which provides expert advice on the benefits of adopting Bitcoin.
SEE ALSO: Coinbase follows MicroStrategy's Bitcoin handbook: Looking for 'opportunities,' says CFO, but also highlights key differences between the companies
“So unlike many industries where they don't want competitors to come in, we're happy to share our strategy. We're happy to advocate. We'll show you how.” MicroStrategy said the CEO.
why is it important: MicroStrategy released its third quarter financial report on Tuesday, revealing a solid Bitcoin investment strategy.
The company announced that it purchased 25,889 BTC during the quarter for approximately $1.6 billion at an average price of $60,839, bringing its total hidden assets to 252,220, worth $18.23 billion.
With an average acquisition price of $9.904 billion, MicroStrategy increased its profits by nearly $8.3 billion on its Bitcoin investments.
MicroStrategy also announced that it will raise $42 billion over the next three years through equity and debt financing to buy more Bitcoin.
In August 2020, MicroStrategy became its first publicly traded company. company Acquire Bitcoin and keep it on the balance sheet as a major treasury reserve asset.
Since then, its value has risen 1,989%, outpacing some of Wall Street's biggest names, including the darling of artificial intelligence. Nvidia.
Interestingly, the company's stock price has also outperformed Bitcoin, with the leading cryptocurrency gaining just 508% during this period.
However, the company's net loss widened to $340 million from a loss of $143.4 million a year earlier.
Price action: At the time of writing, Bitcoin was trading at $72,173.91, down 0.40% in the past 24 hours, according to data from Benzinga Pro. MicroStrategy stock fell 4.23% to end at $247.31 during Tuesday's regular session.
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