The price of Bitcoin is more volatile than traditional stocks. If a listed company with no relevant knowledge and background invests in Bitcoin, it is tantamount to gambling.
One year ago, on August 11, Microstrategy, a listed US stock company, announced its first purchase of BTC. Since then, it has purchased a total of 14 times, with an average of one purchase every 3.7 weeks. Since the announcement of its investment in Bitcoin, MicroStrategy’s stock price has risen by 448%, holding a total of 105,085 BTC, and now 0.56% of the world’s Bitcoin supply has been collected by it. middle.
It’s not just Microstrategy that holds Bitcoin. According to data from OKLink blockchain browser, there are currently 37 listed companies holding bitcoins in the world, with a total of nearly 200,000 bitcoins, and a total market value of nearly 9 billion U.S. dollars.
But not all listed companies are as lucky as Microstrategy, earning more than $2 billion by investing in Bitcoin. According to the statistics of “Blockchain Daily” reporters, 7 of the 37 listed companies holding Bitcoin are currently losing money.
An industry insider analyzed to a reporter from the “Blockchain Daily” that the price of Bitcoin is more volatile than traditional stocks. If a listed company with no relevant knowledge and background invests in Bitcoin, it is tantamount to gambling.
Heavy storage of Bitcoin earns more than 2 billion U.S. dollars in a year
On August 11, 2020, the US listed company MicroStrategy announced the purchase of over $250 million in Bitcoin as part of its asset allocation.
In this regard, MicroStrategy CEO Michael Saylor said, “Bitcoin is digital gold, stronger, faster, and smarter than any currency before it. We hope that its value will follow the advancement of technology, the expansion of the application range, and the network The effect is constantly growing, and network effects have promoted the rise of many category killers in this era.”
Since announcing the first purchase of BTC, the company has since purchased a total of 14 times. According to MicroStrategy’s second-quarter financial report, as of June 30, 2021, MicroStrategy held 105,085 BTC with a book value of US$4.797 billion; the average book value of each bitcoin was approximately US$19,518, and the holding cost was US$2.7 billion.
According to the first quarter financial report, MicroStrategy only held 91,326 BTC as of March 31; the second quarter financial report showed that MicroStrategy had increased its holdings by 13,759 BTC. Specifically, the increase in holdings was completed in four batches: 253 BTC were purchased on April 5; 500 BTC were purchased twice on May 13 and 18; more than 13,005 BTC were purchased on June 21 .
As the price of BTC fell in the second quarter, the BTC assets were also impaired in the financial statements. (According to US accounting rules, when the fair value of digital assets is lower than the book value, companies will be required to recognize impairment losses.)
The data shows that in the second quarter, MicroStrategy’s digital asset (BTC) impairment loss was US$424.8 million, and the cumulative impairment loss since the purchase reached US$689.6 million. According to Tesla’s report on Tuesday, its Bitcoin asset impairment in the second quarter was only $23 million. In contrast, this investment by MicroStrategy seems to perform poorly.
It should be noted that MicroStrategy’s purchase of BTC has been through the issuance of bonds to raise funds from beginning to end. Take this June increase in positions as an example, MicroStrategy is issuing junk bonds with a total principal of US$500 million, an annual interest rate of 6.125%, and maturity in 2028. The first maturity date of the bond is June 15, 2022, and payment will be made every six months thereafter. From the perspective of MicroStrategy’s earnings, if the BTC price can stabilize at the current level, there will be no risk of default in subsequent acceptances.
Liu Bin, a think tank expert at Whale Platform and Director of the Financial Research Office of Shanghai Pudong Reform and Development Research Institute, said in an interview with the “Blockchain Daily” that MicroStrategy is more in line with the flood of funds in the United States and invests in Bitcoin through funds with a fixed interest rate. , The profit is considerable.
Liu Bin analyzed that MicroStrategy believes that this time in the second quarter is the turning point of the entire market’s understanding of Bitcoin, so the company dared to keep increasing its holdings of Bitcoin.
37 listed companies hold Bitcoin
According to data from OKLink blockchain browser, there are currently 37 listed companies holding bitcoins in the world, with a total of nearly 200,000 bitcoins, and a total market value of nearly 9 billion U.S. dollars. Including Tesla, payment giant Square, etc. The detailed list is shown in the figure below.
In the first half of this year, Meitu, a Hong Kong-listed company, also issued multiple announcements to buy cryptocurrencies.
Meitu announced on April 8 that its wholly-owned subsidiary Meitu Hong Kong purchased about 175.7 BTC in open market transactions in accordance with the cryptocurrency investment plan, with a total consideration of approximately US$10 million. Earlier, Meituan disclosed in an announcement on March 17 that its wholly-owned subsidiary Miracle Vision purchased a further 16,000 ETH and approximately 386 BTC in open market transactions in accordance with the cryptocurrency investment plan, with a total consideration. They are 28.4 million U.S. dollars and 21.6 million U.S. dollars, for a total of 50 million U.S. dollars.
On March 7, Meitu also announced that it had purchased 15,000 ETH and 379 BTC in open market transactions, with a total consideration of approximately US$22.1 million and US$17.9 million, for a total of US$40 million.
Calculating the total of the three times, Meitu currently holds more than 940 bitcoins, with an average purchase price of approximately 52,610 US dollars, and also holds 31,000 ethers, with an average purchase price of approximately 1,629 US dollars. At present, Meitu’s total investment in the cryptocurrency market has reached 100 million U.S. dollars.
Wang Haifeng, a senior researcher at Ouke Cloud Chain Research Institute, said in an interview with a reporter from the “Blockchain Daily” that since 2020, the global macroeconomic situation has undergone profound changes. Loose monetary policy has pushed up the market’s inflation expectations. In order to avoid the risk of damage to the nominal principal, investors’ demand for hoarding cash has naturally evolved into a demand for gold and a gold substitute-Bitcoin.
Wang Haifeng pointed out that at present, encrypted digital assets are gradually getting rid of the labels of “niche” and “geek”. Just as more and more listed companies are beginning to hold Bitcoin, in the future, whether encrypted assets such as Bitcoin will be used as “digital gold” “, or a “payment tool”, will be accepted by more institutions and people.
However, among the 37 listed companies counted by OKlink, 7 companies, including Nexon Co Ltd, are currently at a loss. As of today (12th), the price of Bitcoin is about 45,000 U.S. dollars, Nexon Co Ltd has lost nearly 22 million U.S. dollars since buying Bitcoin in April, and the Bitcoin held by Meitu has lost about 6 million U.S. dollars.
Liu Kai, an equity investment partner of Hangzhou TECO, told the reporter of “Blockchain Daily” that the price of Bitcoin is more volatile than traditional stocks. If companies and institutions with no relevant knowledge and background invest in Bitcoin, it is tantamount to gambling.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/37-listed-companies-hold-nearly-us9-billion-in-bitcoin-some-lose-22-million-and-some-earn-more-than-2-billion-2/
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