MicroStrategy’s (MSTR) latest earnings report reveals a massive Bitcoin stockpile now worth $14.7 billion. Despite the impressive Bitcoin haul, the company posted a hefty net loss of $123 million for Q2, exceeding analysts’ expectations.
Bitcoin Stockpile Grows
In Q2, MicroStrategy bought an additional 12,222 BTC for $805 million, boosting its total Bitcoin holdings to 226,500 BTC. This brings its total investment in Bitcoin to about $8.5 billion, acquired at an average price of $36,821 per Bitcoin, according to Bloomberg.
CEO’s Bitcoin Enthusiasm
MicroStrategy’s CEO, Michael Saylor, has been a vocal advocate for Bitcoin, viewing it as a key strategic asset. Saylor believes that Bitcoin offers significant potential for long-term growth and value preservation, a stance reflected in the company’s substantial investments in the cryptocurrency.
Michael Saylor’s Bitcoin Strategy
MicroStrategy is doubling down on its Bitcoin strategy. On August 1, the company filed with the U.S. Securities and Exchange Commission (SEC) to raise $2 billion by selling its Class A shares. The funds are designated for “general corporate purposes, including the acquisition of Bitcoin.” While the exact timeline and allocation for Bitcoin purchases were not detailed, the filing confirms the company’s intention to use the proceeds to expand its Bitcoin holdings.
Is MicroStrategy a Buy?
Analysts remain bullish about MSTR stock, with a Strong Buy consensus rating based on a unanimous 6 Buys. Over the past year, MSTR has increased by a whopping 271%, and the average MSTR price target of $2,186.83 implies an upside potential of 44.65% from current levels.
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