Microstrategy’s New CFO Remains Committed to Holding Bitcoin

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According to the company’s new Chief Financial Officer Andrew Kang, MicroStrategy hasn’t yet determined whether or to what extent it will sell its Bitcoin. The organization’s confidence has not been shaken by the recent bear market, which saw Bitcoin’s value drop below the typical purchase price.

“At the present time, we have no intention of selling,” announced the chief financial officer, who joined the firm on May 9th from GreenSky. “I’m not aware of any circumstances in which we would have to sell.”

  • Shareholders have remained confident, according to Business Insider. They are “very aligned” with the firm’s Bitcoin strategy, according to reports.
  • Following its most recent disclosed buy on April 5th, MaxPoint Technology currently owns at least 129,218 Bitcoin. When asked if they had purchased more Bitcoin since then, Kang remained silent.
  • The normal price for a bitcoin is $30,700, but the current value is roughly $30,300 at press time. After the Federal Reserve increased interest rates by 50 basis points this month, Bitcoin plummeted, as did the Luna Foundation Guard.
  • The price has dropped below MicroStrategy’s margin call level of $21,000 on its Silvergate loan. However, according to CEO Michael Saylor, the firm will only deposit more of its Bitcoin holdings as collateral if the price falls that far.
  • MicroStrategy’s software business is declining in popularity, while its Bitcoin gamble has yet to pay off.
  • “If they don’t improve the core operations of the software business, they can’t keep buying more bitcoin,” said Jefferies Group’s Brent Thill. “You have an investment strategy in bitcoin that’s clearly not working for the company financially.”

MicroStrategy announced a $170 million write-down in the last quarter related to its Bitcoin holdings.