MicroStrategy, a business intelligence and software company, said in its most recent earnings report that it might sell some of the Bitcoins it has on hand soon.
According to the company’s filing, there are two significant outcomes for the total Bitcoins it owns: one, it can purchase more of the digital currency, and the other, it can cash out some of its income and reduce its Bitcoin holdings.
MicroStrategy first made headlines in August 2020, when it made a $250 million acquisition of 21,454 bitcoins as part of a new plan for its Treasury Reserve. Since then, the company has launched its acquisition spree under the leadership of CEO Michael Saylor, issuing senior convertible notes worth $1.05 billion in February to buy even more of the digital currency.
MicroStrategy currently has 91,579 Bitcoins on its balance sheet, priced at an average of $24,311 per Bitcoin. With the price of Bitcoin has more than doubled in the last year, the firm has profited handsomely from its Bitcoin assets. According to the most recent press release, the company may increase or decrease its stacked assets, with no indication of the factors that will affect this decision.
“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, the company said in the earnings report. MicroStrategy added that “in future periods, MicroStrategy may purchase additional bitcoins and increase its overall holdings of bitcoin or sell its bitcoins and decrease its overall holdings of bitcoin.”
MicroStrategy’s entry into the cryptocurrency ecosystem has paved the way for other institutional investors to follow suit. Apart from hosting a conference to educate companies on the benefits of investing in Bitcoin, Saylor has shared his Bitcoin playbook with Tesla CEO Elon Musk, which is thought to have triggered the electric automaker’s $1.5 billion investment in the digital asset. Any decision to sell off its Bitcoin assets could significantly impact the asset’s price, which many analysts are concerned about.