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MicroStrategy officials outlined some potential ways they business analytics software giant could generate revenue from its vast Bitcoin holdings during a virtual investor day, CoinDesk reported. The company’s market cap largely reflects its Bitcoin holdings, which amounted to more than 122,000 Bitcoin as of December 2021 according to the company’s presentation.
Holdings gained $2.1B in value in three months
MicroStrategy bought Bitcoin in large amounts over the last three months. They were worth around $3.7 billion in total. Currently, their value is around $5.8 billion. The presentation states:
We are creating a family of bitcoin-backed instruments using the entire spectrum across the capital structure. We will continue to leverage our balance sheet as an asset to purchase more bitcoins.
The options: loans, investments, mortgage
To generate yield from its Bitcoin, the company could lend part of it to a “trustworthy counterparty,” said CEO Michael Saylor. Another option is investing some in a partnership with a bank or big tech company, which Saylor compares to “putting a lien on it.” A third option is putting a mortgage against it, generating long-term debt under “favorable circumstances.”
The last option Saylor suggested was developing “some kind of interesting application” for the cryptocurrency. In the presentation, Saylor noted that no formal steps had been taken on these possible approaches so far.
An industry leader in enterprise analytics
MicroStrategy is the world’s largest, independent business intelligence platform, the R&D investments made in which set the foundation for durable growth. The company offers organically developed toolsets, which ensure seamless, integrated, consistent, and secure analytics experiences. Its agnostic approach enables integration with all current and future datasets, operating systems, devices, and applications/
Uniquely positioned to meet enterprise customer demands
MicroStrategy’s modern analytics platform enables it to meet such demands to the fullest extent. The company is targeting a multibillion-dollar market opportunity at early stage of moving off legacy tech and to the cloud.
It has multiple vectors for revenue growth, such as expanded analytics and BI market share through enterprise BI replacement and growth, continued growth via penetration and expansion within OEM and ISV markets, and accelerated revenue growth as enterprises move analytics environments to the cloud.
Practical combination of modern analytics and advanced self-service capability
The company’s modern analytics suite enables rapid development and distribution of pervasive, impactful dashboards, infographics, and interactive analytics applications. MicroStrategy is the only vendor with the proprietary HyperIntelligence™, which extends the power of targeted insights beyond merely the data-literate to the broader organization enabling faster and smarter decisions.
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