MicroStrategy Secures $147 Million In BTC In Two Months

In an audacious move, MicroStrategy Inc., a company known for it’s substantial Bitcoin (BTC) investments, has added an extra $147 million worth of the leading cryptocurrency during the last two months. According to the company’s Q2 2023 earnings report, it still struggles with a 12% loss on its Bitcoin assets.

Following MicroStrategy’s noteworthy buy of 12,333 BTC in June for a stunning $347 million investment, this most recent purchase of Bitcoin for $147 million is the next largest transaction ever. As a result, the software company is now one of the biggest corporate investors of the digital currency, holding 158,245 Bitcoins in total.

Both praise and criticism have been leveled at MicroStrategy for their choice to make significant investments in Bitcoin. Michael Saylor, the company’s CEO, has strongly supported cryptocurrencies, praising them as a hedge against inflation and a store of value.

MicroStrategy Shares Increase In Third Quarter, Cites 12% Loss Investment

The share price of MicroStrategy went on a wild journey in the second quarter of 2023. The company’s shares peaked for the year at $462.30 before seeing a sharp fall. The share price of MSTR (MicroStrategy) is currently $318, reflecting worries about the company’s Bitcoin investment and its effects on shareholder value.

In Q2 2023, MicroStrategy lost money, a sharp contrast to the same quarter the year before. The company revealed a startling $917 million impairment loss in Q2 2022, demonstrating the market volatility of Bitcoin’s price.

According to MicroStrategy’s Q2 2023 earnings report, made public earlier this week, its Bitcoin assets have resulted in $24 million in impairment losses. The company’s stock, which trades under the ticker symbol MSTR, has dropped 30% from its peak since July due to this revelation.       

Decrypt’s Andrew Asmakov has written that  “MicroStrategy’s subsequent decline in the cryptocurrency market has caused some to wonder whether the approach will remain viable.” He then asserted that 158,245 BTC, with a total buy value of over $4.68 billion, are currently held by MicroStrategy.

The market value of these holdings is currently around $4.12 billion, highlighting the 12% loss the corporation experienced on its Bitcoin investments. Meanwhile, investors and experts have started expressing concerns about the long-term viability of MicroStrategy’s Bitcoin-centric strategy because of this loss and the impairment losses that were disclosed in the Q2 earnings.

Saylor Recall MicroStrategy’s Journey So Far, SEC Submit Filing Monday

Speaking about the journey, Saylor disclosed that his company’s idea behind the huge Bitcoin acquisition is to purchase and hold it. He also said that it is a way to help the company remain consistent, responsible, and honest in its quest to achieve success.

Investigation into the company’s operations reveals that MicroStrategy recorded its first profitable year since 2020 in the first quarter of 2023. The company has attributed this success to its one-time income tax benefits, which helped it sustain profit in the second quarter of 2023, with a net income of $22.2 million.

This happens amid the $24.1 million impairment charge on the company’s BTC holdings. Further investigation shows that the total number of BTC in the possession of MicroStrategy is around $4.1 billion – judging from the price of BTC is down by 1.7%, trading at $26,100 as of press time.

However, the Security And Exchange Commission (SEC) has submitted its filing on Monday. It included that MicroStrategy and their subsidiaries bought approximately 5,445 BTC at around $147.3 million (cash) – with the price at around $27,053.