Business intelligence firm MicroStrategy, one of the largest Bitcoin (BTC) holders in the US, managed to return to profitability in the second quarter after the Bitcoin price surge.
In the second quarter financial results filing According to an August 1 announcement, MicroStrategy reported a net profit of $22.2 million, up significantly from a net loss of $1.1 billion in the same period last year. His total earnings were roughly flat at $120.4 million.
in July, @MicroStrategy acquired another 467 BTC for $14.4 million and currently holds 152,800 BTC. Join us at 5:00 PM ET to discuss our financial results for the second quarter of 2023 and answer questions about our outlook. # Business Intelligence and #bitcoin. $MSTR https://t.co/SCHeBJ80TH
— Michael Saylor ⚡️ (@saylor) August 1, 2023
Much of the change was due to relatively small digital asset impairment charges of $24.1 million in the second quarter of 2022, compared to $917.8 million in the second quarter of 2022.
For MicroStrategy, digital asset impairment occurs when the market price of Bitcoin falls below the price at which it was acquired.
Bitcoin price hovered between $25,000 and $30,700 in Q2, but saw a notable rally in mid-June after several new spot Bitcoin ETFs were filed with the Securities and Exchange Commission. rice field.
“Our bitcoin holdings increased to 152,800 bitcoins as of July 31, 2023, with an additional 12,333 bitcoins in the second quarter, the largest increase in a single quarter since Q2 2021. ,” said Andrew Kang, CFO of MicroStrategy.
Kang said he used cash from the business to add bitcoin to his balance sheet, a “promising backdrop” of interest from institutional investors, accounting transparency and more regulatory clarity for bitcoin. said it was done in
In an interview with Bloomberg on June 13, MicroStrategy Chairman Michael Thaler said recent enforcement actions by the Securities and Exchange Commission will ultimately play out in favor of Bitcoin. Bitcoin is the only cryptocurrency excluded from securities by SEC Chairman Gary Gensler.
#bitcoin Transparency in the sea of cryptocurrency chaos. pic.twitter.com/4MMpZS3Bd0
— Michael Saylor ⚡️ (@saylor) August 1, 2023
The company acquired 12,333 bitcoins for $347 million in the same quarter. As of July 30, the company has purchased another 467 BTC, bringing its total Bitcoin balance to $4.5 billion at current prices.
In another filing with the SEC, It has been submitted The company also revealed on August 1 that it plans to sell up to $750 million in shares for bitcoin acquisition and other general corporate purposes.
Related: MicroStrategy Buys $347 Million Worth of Bitcoin as Markets Thaw
Bitcoin’s price will continue to climb through 2023, up 79% year-to-date. According to Google Finance, it is currently trading at $29,206.80.
MicroStrategy’s stock has also seen a resurgence, starting at $145.02 per share on January 3 and up nearly 200% to $434.98 at the time of writing, according to Google Finance.
In July, analysts at New York-based investment firm Berenberg Capital released a bullish outlook on MicroStrategy, noting that the upcoming Bitcoin halving rally could see the company’s stock price rise significantly. bottom.
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