A prominent business intelligence company and the largest public holder of Bitcoin in the US, MicroStrategy, recently unveiled its Q2 earnings report, attributing the positive results to the substantial increase in the price of Bitcoin.
In their Q2 earnings report released on August 1st, MicroStrategy, led by Michael Saylor, announced an impressive turnover in financial performance. The company reported a significant net income of $22.2 million, making a substantial shift from the previous year’s net loss of $1.1 billion. Meanwhile, total revenues remained relatively stable at $120.4 million.
The notable change in outcomes was mostly driven by a redacted digital asset impairment loss of $24.1 million in the quarter. This is a significant drop from the considerable loss of $917.8 million faced in the previous year’s Q2. When the market value of Bitcoin falls below its acquisition price, MicroStrategy suffers digital asset loss.
Andrew Kang, MicroStrategy’s Chief Financial Officer, highlighted the effective capital raising achieved through the equity program. They also used operational funds to strengthen their Bitcoin reserves. He noted, “Our bitcoin holdings increased to 152,800 bitcoins as of July 31, 2023, with the addition in the second quarter of 12,333 bitcoins being the largest increase in a single quarter since Q2 2021.”
During the quarter, the company purchased 12,333 Bitcoin, spending a total of $347 million. Additionally, by July 30th, they acquired an extra 467 BTC. This brings MicroStrategy’s Bitcoin portfolio to a value of $4.5 billion, based on the current market prices.
In a separate filing to the Securities and Exchange Commission (SEC), also submitted on August 1st, the company revealed its plan to raise funds by selling stocks, with a potential value of up to $750 million. These funds will be used for acquiring Bitcoin and for general corporate purposes.
Bitcoin’s value has been consistently rising throughout 2023, experiencing a significant increase of nearly 80% since the start of the year. Currency, the coin is being traded at $29,600, as per data from CoinMarketCap.
