MicroStrategy, a prominent Bitcoin (BTC) whale, has recently made another significant purchase of 420 BTC, adding to its already impressive holdings. With this latest acquisition, the company now possesses a total of 152,800 BTC, valued at approximately $4.46 billion.
According to MicroStrategy’s Q2 earnings report, the 12,800 BTC acquired since Q1 were purchased at an average price of $28,233 per coin, which is below the current market price of $29,195. The company efficiently raised capital through its at-the-market equity program and utilized cash from operations to increase its Bitcoin holdings.
Andrew Kang, the CFO of MicroStrategy, expressed optimism about Bitcoin, citing increasing institutional interest, progress in accounting transparency, and ongoing regulatory clarity as factors contributing to its promising future. MicroStrategy’s executive chairman, Michael Saylor, remains a strong advocate for BTC and is the company’s largest shareholder, personally owning tens of thousands of coins.
Despite being a software business, MicroStrategy reported $120.4 million in revenue in Q2 2023, a slight decrease of 1.4% compared to the same period last year. However, operating expenses significantly decreased by 88.2%, primarily due to a much lower impairment loss on BTC holdings this quarter ($24.1 million) compared to Q2 2022 ($917.8 million).
During an earnings presentation, MicroStrategy emphasized that its core business is insulated from near-term Bitcoin price volatility. Additionally, the company increased its cash holdings from $43.8 million to $66 million since Q4 2022.
MicroStrategy’s continuous accumulation of Bitcoin showcases its confidence in the long-term potential of the cryptocurrency. With a substantial BTC portfolio and a positive outlook on the future, the company remains at the forefront of institutional adoption in the crypto space.
Please note that the content above is for informational purposes only and should not be considered financial advice.
