According to Decrypt, Bitcoin development company MicroStrategy has reported a loss in its latest quarterly results but remains committed to increasing its Bitcoin holdings. The company announced on Wednesday that it plans to raise $42 billion over the next three years to purchase more Bitcoin. This strategy is part of the firm's “21/21 Plan,” which involves raising $21 billion through equity and another $21 billion through fixed income securities. MicroStrategy, already the largest publicly traded holder of Bitcoin with 252,220 coins valued at $18.2 billion, has no plans to slow down its Bitcoin acquisitions, according to CEO Pong Le.
In the company's earnings statement, MicroStrategy posted revenue of $116.1 million, a 10% decrease year-over-year, falling short of analyst expectations. The net loss for the quarter was $340 million, compared to a loss of $143.4 million in the same period last year. Despite these financial setbacks, the company continues to focus on Bitcoin as a treasury reserve asset, aiming to achieve higher BTC yield with the additional capital.
MicroStrategy, based in Tyson, Virginia, has transformed from a quiet software company to a major player in the Bitcoin market. Investors now use the company's stock as a proxy for Bitcoin, allowing those who prefer not to buy the cryptocurrency directly or through exchange-traded funds to gain exposure to it. The firm first invested in Bitcoin in 2020 to maximize shareholder returns and has consistently increased its holdings since then.
As of now, Bitcoin is trading at $72,209, reflecting a 9% increase over the past week, according to CoinGecko. Meanwhile, MicroStrategy's stock has declined by over 4%, currently trading at $247.31 per share.
