Bitcoin has experienced high volatility over the past 24 hours. It initially dropped to $62,300, then surged to $65,600, and finally settled around $64,500. As a result, the market has seen significant liquidations, affecting numerous trading positions.
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According to data from Coinglass, a whopping $284.63 million worth of crypto traders' positions were liquidated during this period, impacting nearly 100,870 traders.
Industry leaders remain bullish on Bitcoin's long-term prospects despite these short-term fluctuations. Crypto whales and MicroStrategy have invested $302 million in Bitcoin, signaling confidence even amid the price drop. MicroStrategy added 169 BTC worth $11.4 million to its portfolio in July. Meanwhile, a crypto whale took advantage of the market dip, transferring 4,600 BTC worth $291 million from Bitfinex to a new wallet when Bitcoin briefly dipped to $62,300 on Thursday.
MicroStrategy Keeps Buying Despite Q2 Losses
In its Q2 earnings report, MicroStrategy revealed significant losses, reporting a loss of $5.74 per share and quarterly revenue of $111.4 million, marking a 7% decrease compared to the previous year. Notably, the firm reported a net loss of $123 million in Q2, slightly better than the $137 million net loss in the same quarter of 2023.
These losses exceeded analysts' expectations, who had predicted a quarterly loss of $0.78 per share and revenue of $119.3 million.
Despite the company's overall significant losses, MicroStrategy has been actively buying bitcoins, adding 169 BTC worth $11.4 million in July. The firm also reported that its Bitcoin yield has reached 12.2% year-to-date, and they’re aiming for an annual yield of 4% to 8% over the next three years.
In July, @MicroStrategy acquired an additional 169 BTC for $11.4 million and now holds 226,500 BTC. Please join us at 5pm ET as we discuss our Q2 2024 financial results, the outlook for $BTC, and our #Bitcoin development strategy. $MSTRhttps://t.co/cfGPc42jfM
— Michael Saylor⚡️ (@saylor) August 1, 2024
This recent purchase brings their total Bitcoin stash to a whopping 226,500 BTC, currently valued at around $14.6 billion. MicroStrategy has spent $8.3 billion on these BTC at an average price of $36,821, and they have no intention of stopping anytime soon.
Continued Confidence in Crypto
The community continues to praise MicroStrategy and its co-founder Michael Saylor for their bold Bitcoin strategy. Phong Le, the CEO of MicroStrategy, expressed ongoing optimism about Bitcoin's potential:
Regarding adoption, we're extremely optimistic due to the increasing understanding of Bitcoin and growing support for the ecosystem from bipartisan politicians and institutions, as demonstrated at the Bitcoin 2024 conference in Nashville.
MicroStrategy has introduced a new key performance metric called "Bitcoin Yield," which measures the percentage change over time in the ratio between the firm's Bitcoin holdings and its diluted shares outstanding.
To put it simply, "diluted shares" refers to all potential shares a company could have, including those not yet issued. This includes not only the existing shares but also potential shares that could be created if someone converts debt into equity or exercises stock options at a predetermined price.
Additionally, MicroStrategy announced plans to file a registration form for a $2 billion at-the-market stock offering to raise additional capital. While the firm didn't specify what the funds would be used for, historically, they've used such capital to buy more Bitcoin.
More: Diving into the Dip: MicroStrategy's Latest Bitcoin Buying
Clearly, when major Bitcoin holders like MicroStrategy continue buying at nearly peak prices (minor fluctuations aside), they're banking on a highly profitable future. This sentiment is echoed by other industry leaders, like Jan Van Eck, CEO of the asset management firm VanEck, who predicts that Bitcoin could eventually reach half the market cap of gold, equating to roughly $350,000 per Bitcoin.
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