MicroStrategy Won’t Change Its Bitcoin Plans Despite Recent Declines, New CFO Says

MicroStrategy Won’t Change Its Bitcoin Plans

Despite the current selloff in bitcoin, which has dragged down the value of MicroStrategy’s assets, the company’s new chief financial officer indicated on Wednesday that the company’s long-term plan of buying and keeping Bitcoin will not change.

Bitcoin’s price has dropped 32% in the last year to $29,128.50 as of Wednesday, while MicroStrategy’s stock has dropped 56.6 percent to $197.44 in the same time. In recent weeks, technology companies have also fallen as investors respond to higher interest rates.

Along with payment provider Block Inc. and automaker Tesla Inc., MicroStrategy is one of a few companies with significant bitcoin holdings. The firms claim that the investments will benefit shareholders.

MicroStrategy reported holding $2.9 billion in book value of cryptocurrencies as of March 31, up from $1.95 billion a year earlier. As of May 2, the company has purchased 129,218 bitcoins at an average price of $30,700 per bitcoin. MicroStrategy has refused to say whether it has purchased any additional bitcoin since then.

“At this time, we do not have any intention to sell,” said Andrew Kang, who joined the company on May 9 from home-improvement lender GreenSky Inc., where he served as CFO. “There are no scenarios that I’m aware [in which] we would sell.”

“Our investors are very much aligned with our strategy,” he added, adding that MicroStrategy hasn’t been pressured by shareholders to sell any of its bitcoin assets.

MicroStrategy said it follows bitcoin pricing but wouldn’t say if it intended to buy the cryptocurrency in the future. Mr. Kang stated that the current bitcoin market downturn has had no influence on the company’s strategy.

“Some of the more recent volatility was certainly around some of the activity outside of bitcoin,” he said. “For us, we monitor that from a market perspective, but there [isn’t] anything fundamental to bitcoin that we believe presents any issues against our strategy.”

Mr. Kang believes that recent volatility may lead to increased cryptocurrency market regulation, which MicroStrategy supports. President Biden signed an executive order in March to research digital currencies, and the Financial Accounting Standards Board, which sets accounting regulations for American businesses, announced last week that it will work on a project on cryptocurrency accounting and transparency.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Hazel

CoinCu News