MicroStrategy is a leading business intelligence firm and a major holder of Bitcoin in the United States. In their Q2 earnings results filing on Aug. 1, MicroStrategy reported a staggering $22.2 million in net income, an impressive shift from the massive net loss of $1.1 billion in the same period last year. While total revenues remained relatively flat at $120.4 million, the significant improvement was mainly attributed to a much smaller digital asset impairment loss of $24.1 million, compared to the whopping $917.8 million experienced in Q2 2022.
Throughout the quarter, MicroStrategy’s strategic move to invest in Bitcoin paid off as Bitcoin’s price fluctuated between $25,000 and $30,700, surging in mid-June after the filing of new spot Bitcoin exchange-traded funds.
Previously in a report by Todayq News on June 28, 2023, the firm’s Bitcoin holdings increased to 152,333 bitcoins, boosted by the acquisition of 12,333 bitcoins worth $347 million in the quarter. Furthermore, as of July 30, 2023, MicroStrategy made an additional purchase of 467 BTC and increased their holding to 152,800, bringing their total Bitcoin balance to a staggering $4.5 billion at current prices.
The company’s Chairman, Michael Saylor, expressed confidence in Bitcoin’s potential, especially given recent enforcement actions from the Securities and Exchange Commission, which classified Bitcoin as not being a security.MicroStrategy’s financial success and growing share price, rising nearly 200% from $145.02 to $434.98, have garnered a bullish outlook from analysts, projecting further gains due to the upcoming Bitcoin halving rally.
In response to their ongoing faith in Bitcoin, MicroStrategy has further announced plans to raise $750 million through a stock sale. According to a filing with the Securities and Exchange Commission, the company has entered into a sales agreement with three reputable firms—Cowen and Company, Canaccord Genuity, and Berenberg Capital—for the sale of its ‘Class A’ common stock.
The proceeds may be used for general corporate purposes, including buying more Bitcoin and working capital. Currently, MicroStrategy holds 152,800 Bitcoins, valued at $4.5 billion. They aim to generate incremental Bitcoin for shareholders through various means. The price of Bitcoin increased about 2% after the announcement. MicroStrategy’s shares have risen nearly 200% since the beginning of the year, benefiting from the ongoing Bitcoin rally.