- MicroStrategy Inc narrowed its bitcoin-related losses in the first quarter.
- Its executive chairman, Michael Thaler, remains bullish on Bitcoin.
- Bitcoin is currently up about 70% compared to early 2023.
Bitcoin has fallen about 7.0% in recent weeks, but MicroStrategy Inc Chairman Michael Saylor remains confident in its long-term potential.
Michael Saylor on MicroStrategy’s first quarter results
Earlier this week, the Nasdaq-listed company said impairment losses related to its bitcoin holdings had shrunk more than 90% quarter-on-quarter to $18.9 million. first quarterAccording to Thaler:
Bitcoin is the ultimate digital scarcity network. It has averaged about 50% over the last three years. The key to Bitcoin is being able to hold onto it and withstand volatility.
MicroStrategy currently owns approximately 140,000 bitcoins in total. Not surprisingly, BTC’s recent surge, which is still up 70% this year, is a meaningful tailwind for the company.
“MSTR” has more than doubled since early 2023.
Why is the price of Bitcoin going up this year?
Thaler said some of the Bitcoin price strength this year was due to inflation In the United States, it is hovering at 5.0% annually, well above the Fed’s target of 2.0%.
Recent bank failures have also undermined confidence in fiat currencies, he added. CNBC’s “Closing Bell: Overtimesaid Thaler:
Bitcoin is a cyberspace bank run by incorruptible software. So the phase of running your own bank emerged as an investment idea in the US.
Interestingly, he was dubbed in progress Crypto crackdown Bitcoin also benefits because it has established a reputation as a safe-haven asset.