Michael Saylor’s strategy could earn about $14 billion in unrealized revenue in the second quarter, turning once struggling enterprise software makers into leverage Bitcoin Agents such as selected ranks of company Titans Amazon.com Inc. and JPMorgan Chase & What.
Unlike the top 10 multinationals whose operating profits are expected to exceed $10 billion by generating billions of sales, former MicroStrategy Inc. can attribute the eye-catching results to a rebound in Bitcoin prices and its significant value for CryptoCtocurenceRence when it causes considerable recent accounting changes. According to analysts surveyed by Bloomberg News, the strategy is expected to release only the software business’ second-quarter revenue of about $112.8 million.
There could be record profits in the three months ending June 30, which are criticisms from opponents such as Jim Chanos. The famous short seller recommends arbitrage transactions to shorten strategic shares and buy Bitcoin, betting stock orders over the value of their token holdings, which will shrink. The call sparked a verbal war that attracted Wall Street, with Chanos saying Saylor’s model valued the “financial boredom” of cryptocurrency companies, while Saylor believed Chanos just didn’t understand it.
“Saylor certainly has the right to feel proof,” Benchmark Capital analyst Mark Palmer has been rating the strategy for a “buy” since February 2024. “He has been criticizing him for over four years, and his company is both superior to all other stocks, and even criticizing him for all other stocks, even S&P.”
Since Saylor started buying Bitcoin in mid-2020, the strategy’s stock has soared more than 3,300% to fight inflation. During the same period, Bitcoin grew by about 1,000%, while the S&P 500 grew by about 115%. Stocks rose 40% in the second quarter as S&P grew 11%.
exist First quarterthe strategy adopts accounting changes, requiring the company’s current Bitcoin price of about $64 billion at market prices. Strategy and Bitcoin’s corporate buyers are now recognizing unrealized changes that often generate a significant amount of revenue. The strategy posted a record $4.2 billion loss in the first quarter, with Bitcoin slumping by 12%.
Prior to the accounting change, the strategy had classified its Bitcoin holdings similar to intangible assets such as patents or trademarks. When the price of Bitcoin falls below the previous carrier value, this designation forces the strategy to permanently reduce its holding value. Only by selling the token can you recognize the gain.
The company held 528,185 bitcoins at the beginning of the quarter, worth more than $43.5 billion, when the tokens were traded at about $82,444.71 per person in the March 31 transaction. Bitcoin’s 30% value-added increases the market value of these holdings by more than $13 billion, while weekly purchases exceed $600 million, while over $6 million in price exceeding sales exceeding $6 million in sales, while increasing sales volumes continue to increase prices by millions of dollars.
The strategy is expected to release the second quarter results in August. A company representative did not respond to a request for comment.
Although accounting changes are well known, the first-quarter losses sparked several class-action lawsuits alleging that the strategy director made untrue and misleading statements that hurt shareholders. Strategy says it aims to “strongly defend these claims” in a recent filing with the Securities and Exchange Commission.
