MicroStrategy is an enterprise analytics and mobility software company that holds the most bitcoins of all public companies worldwide. It will continue to purchase the digital asset despite reporting impairment losses of $424.8 millions during the second quarter 2021. Since Q3 2020, the cumulative impairment losses have been $689.6 millions. The company owned 105,085 Bitcoins, with a carrying or book value of $2.051 trillion as of June 30, 2021. The average bitcoin carrying amount was $19,518. According to buybitcoinworldwide.com, Tesla followed by Galaxy Digital Holdings, Voyager Digital and Square were other leading public bitcoin holders having 42,902, 16,400, 12,260, and 8,027 bitcoins respectively.
“We are pleased with the outcomes of the digital asset strategy’s implementation. We were able to increase our digital holdings by raising capital. They now total more than 105,000 bitcoins. MicroStrategy CEO Michael J. Saylor stated that they plan to continue investing additional capital in our digital asset strategy. Holding and acquiring bitcoin is a reliable store of value that can be supported by an open-source, robust architecture, untethered from sovereign monetary policies.
The non-GAAP digital asset costs basis and non-GAAP calculation for the market value of MicroStrategy’s bitcoin was $2.741 billion as of June 30, 2021. This reflected a bitcoin cost of approximately $26,080, and a bitcoin market price of $34,763.47. The company stated that MicroStrategy LLC (a subsidiary of MicroStrategy) holds approximately 92.079 bitcoins. MicroStrategy lost $299.3 Million in the second quarter compared to its net income of $3.4million for the same period in 2020.
In June, the company reported that it had raised $500 million through a bond sale to purchase more Bitcoins. “MicroStrategy intends use the net proceeds of the note sale to acquire additional bitcoin,” the company stated in a statement. This statement underscores institutional interest in the largest cryptocurrency in the world, despite recent price corrections.
Elon Musk’s Tesla also reported $23 Million in impairment related to Bitcoin in Q2 operating income. This was in response to the drop in bitcoin’s value to $30,000 in June. Both MicroStrategy and Tesla consider bitcoin intangible assets. Therefore, any decrease in fair value below their digital currency assets at any given time will result in them having to report impairment. Tesla’s investment in bitcoin was worth more than a billion dollars, so the losses may not have an impact on it. Operating income at the company had risen by 301 percent to $1.3 billion, up from $327m in Q2 2020.