Why Bitcoin Holdings Affect Microstrategy Shareholders

Published on:

Last Updated on July 26, 2022 by Bitfinsider

The decline in Bitcoin prices continues to result in unrealized losses for Microstrategy, which has an impact on the stock price of the company. Next week, the company will report its Q2 earnings, and Jefferies has cut it from hold to underperform. It’s possible that Microstrategy will provide an update on its plans for its Bitcoin holdings.

According to a recent report by Brent Thill of Jefferies, the company’s poor use of its business information had an impact on the choice. He continued by saying that a revision to Microstrategy’s Bitcoin strategy was also anticipated from the business. This becomes even more important in light of the protracted bear market mood that has been present in the cryptocurrency field in recent months. The downgrade also had a detrimental effect on the company’s stock price in pre-market trading.

“We expect an update on management’s intent to continue to invest in Bitcoin. The downbeat coverage is due to MicroStrategy’s lack of execution on its business intelligence business amid a tougher macro backdrop,” Thill added.

Does the strong Bitcoin belief of Michael Saylor truly has no impact on Microstrategy?

Bitcoin is strongly backed by Microstrategy’s creator and CEO, Michael Saylor. He frequently expressed his support for the most popular cryptocurrency in public. Saylor recently forecasted a significant long-term price increase for Bitcoin. In an interview last month, he predicted that Bitcoin would reach a million dollars as long as its price did not go to zero.

Given this context, it is quite improbable that Saylor’s business would make any adjustments to its Bitcoin strategy. Microstrategy is the largest institutional Bitcoin holder in the world, with 129,918 BTC in total. Over the past few years, the corporation had acquired Bitcoin at various stages for an average price of $30,700. According to CoinMarketCap, the price of one bitcoin is currently $20,964, down 0.30 percent from the previous day and 4.32 percent from the previous week.

According to estimates, the bear market cost the corporation over $1 billion in unrealized losses last month. Saylor maintained confidence in Bitcoin despite the setback by claiming that his business has planned for volatility.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked.

To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor


Are you new to investing and would like to find out more about investments and cryptocurrency? If you know nothing about a topic and want to become an expert on it, one fool proof way to start is to read good books about the topic.

If you read one book about a topic, you will be able to share knowledge or discuss the topic at an elementary level with almost everyone.

Read three books and you will likely know more than the majority of people and will be able to discuss the topic at an intermediate to expert level.

  1. The Intelligent Investor by Benjamin Graham
  2. Crypto Investing Guide: How to Invest in Bitcoin, DeFi, NFTs and More by Ian Balina
  3. The Basics of Bitcoins and Blockchains: An Introduction to Cryptocurrencies and the Technology That Powers Them by Antony Lewis

Disclaimer: Above are some affiliate links and we may collect a share of sales or other compensation from the links on this page.

Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

Related