02 Aug, 2023

MicroStrategy Now Owns $4.4 Billion Worth of BTC, Plans More Acquisition

michael saylor microstrategy

TL;DR

Business intelligence firm Microstrategy released its Q2 2023 earnings, showing a $22.2 million net income.

It bought 467 BTC in July, now holding 152,800 BTC that is worth $4.4 billion.


Largest Corporate Bitcoin Holding

MicroStrategy’s latest financials demonstrate the firm’s continued active pursuit of Bitcoin acquisition. The firm’s official press release reveals that it currently holds a total of 152,800 BTC.

While the firm acquired 467 BTC in July, the total acquisition in Q2 2023 amounts to 12,800 BTC. The financials show that the business intelligence firm bought $361.4 million of King Crypto in the last quarter. That is an average of $28,233 per coin.

The complete Bitcoin holdings’ average cost is $29,672 per BTC. Given the current market conditions, the firm is breaking even on its overall investment.

Bitcoin's value sharply increased after news about MicroStrategy's BTC purchase spread. Source: CMC
Bitcoin’s value sharply increased after MicroStrategy’s BTC news | Source: Coinmarketcap.

The broader crypto market saw a slump in short-term time frames, with BTC hitting as low as $28,785 on 1st August. 

However, as the news broke out of MicroStrategy’s increased BTC holdings, the coin surged in value, almost touching $30,000. BTC is currently trading at $29,610. That is about the same price as the average price paid by the firm for its BTC portfolio.

MicroStrategy now stands as one of the largest BTC-holding corporations in the US – if not the largest.

More Bitcoin Purchases Planned

MicroStrategy has also filed documents with the Security and Exchange Commission, showing the firm’s intention to acquire more BTC in the new quarter.

According to the documents, the business plans to issue and sell $750 million in Microstrategy common stocks ($MSTR). The money raised may be used for Bitcoin.

“As with prior programs, we may use the proceeds for general corporate purposes, which include the purchase of Bitcoin as well as the repurchase or repayment of our outstanding debt.”

– MicroStrategy CFO, Andrew Kan

MicroStrategy’s strategy (pun not intended) seems to be working in its favor. Michael Saylor, the CEO behind the firm, is well known for his pro-Bitcoin stance. He has been very vocal about believing BTC is the savior against inflation.

MicroStrategy has posted a healthy 22.2 million in net income for Q2 2023. This is a major shift from last year’s Q2 reporting, which had the firm under $1.1 billion. Last year’s dip was mainly due to an impermanent loss of around $917.8 million.

Impermanent losses occur when the current price of an asset drops below the acquisition rate.

MicroStrategy doesn’t seem to be troubled much by impermanent losses. The price of $MSTR shares has already doubled in value. The start of the year had MicroStrategy shares exchanging hands at $145.02, but as of August 2, the shares have climbed up to $434.