Bloomberg: new accounting system may turn MicroStrategy around next year
On Oct. 30, MicroStrategy's stock performance over the past two years has outperformed almost all large-cap U.S. stocks. Its co-founder and chairman Michael Saylor's unconventional decision to buy bitcoin four years ago to offset inflation has fueled a more than 1,700 percent rise. MicroStrategy has shifted from using cash flow to issuing convertible notes to buy bitcoin, and it plans to explore other ways to fund more purchases. Saylor said he is essentially borrowing money at 1 percent to buy bitcoin. Bloomberg expects a new accounting system next year to turn loss-making MicroStrategy into a profit, as bitcoin assets will be revalued to market value, potentially leading to a net profit of $2 billion for the company next year, compared with a loss of about $200 million this year. (Bloomberg)
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