Recently, in June 2022, MicroStrategy, the data analytics firm and one of the largest Bitcoin holding organizations in the world, revealed that the firm had made another purchase of around 480 Bitcoins worth $10 million.
MicroStrategy, the firm that started its Bitcoin holding in August 2020, currently holds 129,699 Bitcoins.
However, as Bitcoin is experiencing a downward trend after the asset lost its $23,000 range, the analytics firm has been hit with unrealized losses affecting the company’s shares drastically.
While MicroStrategy’s Q2 earnings reports are scheduled to be revealed next week, Jefferies, the investment banking firm, downgraded the company’s stocks from hold to underperform. Nevertheless, there are no updates yet from the company.
An analyst at Jefferies, Brent Thill, claims that one of the reasons for MicroStrategy’s present situation is the company’s inefficiency in working on its business intelligence.
The firm has yet to disclose its strategy toward its Bitcoin holdings as it would be challenging to hold on to them during the ongoing bearish market sentiment, especially in the last couple of months.
On the other hand, MicroStrategy’s status degradation from hold to underperform given by Jefferies has negatively impacted the company’s share price. The firm’s share price has declined around 6.50% in pre-market trading.
Michael Saylor In Support Of Bitcoin
Meanwhile, MicroStrategy’s CEO and founder, Michael Saylor, has always been a Bitcoin proponent and has spoken in favor of the asset several times. In the latest interview as well, Michael Saylor was seen forecasting a bull run for the Bitcoin price.
At the time of reporting, Bitcoin is selling at $21,370, with a surge of 1.29% over the last 24hrs.
According to the reports, in June, MicroStrategy saw an unrealized loss of around $1 billion owing to the bearish trend.
Source: Read Full Article