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MicroStrategy approach to bitcoin won't alter despite market slump, CFO says (NASDAQ:MSTR) – Seeking Alpha


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Even as the cryptocurrency market undergoes hefty drawdowns, MicroStrategy’s (NASDAQ:MSTR) approach to buying and hodling bitcoin (BTC-USD) won’t change, Andrew Kang, the company’s new CFO, told the Wall Street Journal Wednesday.

For some context, the business analytics software provider has acquired a total of 129,218 bitcoins (BTC-USD) at an average price of $30.7K, reflecting an original cost basis of $3.97B, as of May 2, the WSJ noted. Over the past 24 hours, bitcoin is rising around 3% to $29.8K but still off more than 50% from its all-time high in Nov. 2021 amid macro headwinds such as rising interest rates and tighter monetary policy.

Likewise, shares of MSTR, which can be viewed as a levered proxy to bitcoin (BTC-USD), is jumping nearly 8% intraday, though down a whopping 70% over the past six months.

“At this time, we do not have any intention to sell,” Andrew, who joined MSTR on May 9, emphasized to the WSJ. “There are no scenarios that I’m aware [in which] we would sell.”

In addition, Andrew said that MicroStrategy’s (MSTR) shareholders haven’t pressured the company to sell any of its bitcoin (BTC-USD) holdings and “our investors are very much aligned with our strategy,” he added, as reported by the WSJ.

Despite management’s confidence in their bitcoin (BTC-USD) strategy, some are wary about whether MicroStrategy (MSTR) would get hit with a margin call if the crypto were to fall to a particular level. In the end of March, crypto lender Silvergate Capital (SI) issued a $205M bitcoin-backed loan to a subsidiary of MicroStrategy.

Nevertheless, speculators are shunning cryptos and a slew of risk assets, as the Federal Reserve and other central banks in developed nations get more serious about pivoting to more hawkish monetary policy. But “in a global bear market, there is no place to hide, but there is one place to stand. #Bitcoin,” MicroStrategy CEO Michael Saylor, a long-standing advocate of the crypto, wrote in a Twitter post.

In Nov. 2021, MicroStrategy CEO Michael Saylor said people can trust bitcoin.





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