Aug 2, 2023

Shares of Microstrategy (MSTR) have risen 15% in the past month.

Video transcript

The chart of the day is brought to you by crypto dot com. The world's fastest growing crypto app Micro strategy is out with its latest earnings report. The company posted an impairment charge of $24.1 billion on its Bitcoin holdings in the second quarter. Well, that hasn't stopped shares from rising. They're up 15% in the past month and joining us now to discuss is approaching capital President David Tael. Welcome David. Hey Lawrence. Good morning. Good to see you again. Uh I got to ask you about uh micro strategy here. We probably have different opinions on it. Of course. Um You know, this is a company that's gone and it seems to have abandoned what it does and is focused on uh hoarding Bitcoin at this point, uh $4.5 billion worth of Bitcoin on its balance sheet right now. Uh I don't even think it's market cap. Uh It, it adds up to what it used to value the company itself plus the the added uh Bitcoin. So at what point, do do investors say, you know what, there's an ETF coming out? Potentially, there are other ways to invest in crypto. Other than hoping Mike, the uh Michael sailor can leverage uh in into the capital markets and buy a ton of Bitcoin. That's a great question. Um Said it said differently. Does micros strategy as it currently exists and as it seems to be going have a finite shelf life in, in light of the developments in the sector as of now, we don't have the spot Bitcoin ETF in the United States. Uh We've got a lot of clamoring. Um micro strategy still fills um a need, let's say in the marketplace in some way. Um It's certainly, you know, easier to buy and sell than G BT C and uh it's obviously operated somewhat differently. And on top of that, you know, the, the most significant point out of yesterday's earnings call for microstrategy is the fact that they may go out there and raise an additional three quarters of a billion dollars to buy more Bitcoin. So as long as we've got this disjointed system of how, in fact, people can invest in Bitcoin, there seems to be room in the universe for one micro strategy.

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