Buy companies ... apart from Microstrategy ... still Bitcoin?

Buy companies ... apart from Microstrategy ... still Bitcoin?

Microstrategy bought more Bitcoin.

The company snapped more from the cryptocurrency during the ongoing market depression, while other companies with considerable Bitcoin (BTC) reserves in a rocky and unpredictable market have largely dispensed with additional purchases.

The recent purchase of 301 BTC by the business intelligence company based in Virginia cost around $ 6 million, the CEO Michael Saylor tweeted on Tuesday-an average price of around $ 19,850. The purchase follows the move of Microstrategy at the beginning of this month to obtain fresh capital by selling new shares worth up to $ 500 million.

With the purchase, Microstrategy now has 130,000 bitcoins that were purchased for almost $ 4 billion-an average of $ 30,639. A company spokesman did not answer a request for comment.

Bitcoin was traded in New York on Tuesday afternoon with around $ 18,900-which gives the Bitcoin arsenal from Microstrategy a value of almost $ 2.5 billion.

The company recorded the value of $ 918 million in the second quarter of the value of $ 918 million, which contributed to a net loss of $ 1.1 billion.

Value reduction costs the cause for concern

Josh Olszewicz, research manager at the crypto fund manager Valkyrie Investments, told Blockworks that there are long-term purchase opportunities for companies that want to include BTC in the corporate balance sheets, but will continue to provide the impairment costs.

Bitcoin is subject to an impairment if the at the time value of Bitcoin falls below the book value during the assessment period. The Financial Accounting Standards Board (FASB) is currently Review of the reduction costs in connection with digital assets in the balance sheet.

"If the reporting methods adapted by the FAB and the reduction costs for selected digital assets such as Bitcoin are canceled, acceptance by companies will probably increase," said Olszewicz. "Bitcoin in the balance sheet will then reflect realistic market prices exactly and not the lowest price while the asset is kept."

Ben McMillan, Chief Investment Officer at IDX Digital Assets, said that the macroeconomic headwind from Blockworks keeps many institutional investors in a risk -free attitude. Nevertheless, such investors begin to think about when it could make sense to become Bitcoin buyers.

"As far as companies are concerned, Bitcoin keep in their balance sheets, I think that this type of buyer will be less common," said McMillan. "The volatility is something for which investors are paid for, while - for corporate bonds - it is potentially much greater headache to explain it at a quarterly request for profit."

will other large BTC owners buy?

Although Microstrategy continues to buy Bitcoin - a strategy that has doubled, even though the Washington DC General Prosecutor has filed a lawsuit against Saylor and his company - other large listed owners of Bitcoin have taken a break.

Tesla currently holds 10,800 BTC bitcoinTreasuries.net . Bought for around $ 560 million, its current value is around $ 205 million.

After the company issued $ 1.5 billion in the first quarter of 2021 for the acquisition of around 43,200 BTC, the company sold around 75 % of its bitcoins for $ 936 million in the second quarter of this year. In this quarter, it had to accept a loss of value of $ 170 million for its stocks of digital assets.

CEO Elon Musk said at the time that the sale "should not be seen as a judgment on Bitcoin" and added that Tesla could increase his BTC stocks in the future.

But Morningstar's stock strategist, Seth Goldstein, told Blockworks that, given the recent Bitcoin sale of the company, he would not expect Tesla to buy the purchases again for at least another year.

"Tesla's purchase of Bitcoin was part of the preparation of the company to possibly accept Bitcoin as a means of payment," he said. "If Tesla decides to pursue this payment option in the future, you can buy more Bitcoin in advance."

is currently holding around 8,000 BTC worth around $ 150 million. The company, which invested $ 50 million or $ 170 million in Bitcoin in the fourth quarter of 2020 and the first quarter of 2021, recorded a Bitcoin value reduction of $ 36 million in the second quarter of this year.

spokesman for Tesla and Block did not respond to inquiries about comments.

In terms of other industries that consider to include Bitcoin in their balance sheets, Olszewicz said that the chatter has calmed down - for the time being.

"This does not mean that some companies do not use the decline and see it as a purchase opportunity," he said. "We always only find out about these purchases afterwards, and it would not be surprising if later other companies would announce that they have now bought."

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