Bloomberg predicts new accounting rules will turn MicroStrategy from loss to profit next year
On October 30th, MicroStrategy's stock performance over the past two years has outperformed almost all large US stocks, including Nvidia. The unconventional decision of its co-founder and chairman, Michael Saylor, to purchase Bitcoin four years ago to offset inflation has pushed its rise by over 1700%. MicroStrategy has shifted from using cash flow to issuing convertible notes to purchase Bitcoin and plans to explore other ways to provide funding for more purchases. Saylor stated that he essentially borrowed money at a 1% interest rate to purchase Bitcoin. Bloomberg expects next year's new accounting system to turn MicroStrategy's losses into profits, as Bitcoin assets will be revalued at market value, which could result in the company's net profit of $2 billion next year, compared to a loss of about $200 million this year.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Time is Running Out! The 5 Next Cryptos to Explode with Massive Gains!
How to Leverage FXGuys’ Ecosystem for Long-Term Crypto Gains
Cryptocurrency Enthusiast Earns $15,000 a Day with BCH Miner
Bitcoin dominance rises to 58% as altcoins struggle, legacy tokens show strength
Bitcoin’s ability to maintain its market dominance without significant price appreciation remains a key consideration, particularly as legacy cryptos show renewed strength.The following is an excerpt from The Block’s Data and Insights newsletter.