The software company released its second-quarter earnings on Tuesday following the market close.
According to its most recent earnings report, MicroStrategy (MSTR) reported an impairment charge of $24.1 million on its bitcoin (BTC) holdings in the second quarter, compared to $917.8 million in the year-ago quarter and a $18.9 million loss in Q1.
Bitcoin’s price has fallen compared to the price at which it was purchased, which is reflected in the company’s digital asset impairment. Currently, the cost of digital assets like cryptocurrencies must be recorded as its worth, and only if that value is harmed or decreases must it be updated. But unless an asset is sold, a price increase is not reported.
The cost of Bitcoin was approximately $28,500 at the start of the second quarter and was approximately $30,400 at its conclusion.
According to a statement from Andrew Kang, Chief Financial Officer, “as of July 31, 2023, our bitcoin holdings increased to 152,800 bitcoins, with the addition in the second quarter of 12,333 bitcoins being the largest increase in a single quarter since Q2 2021.” We successfully raised money through our at-the-market stock program, and we used operating cash flow to keep adding Bitcoin to our balance sheet. We did so in light of the encouraging trends of growing institutional interest, advancements in accounting transparency, and continued regulatory clarification for Bitcoin.
According to a tweet from executive chairman Michael Saylor, the corporation bought 12,333 Bitcoin for $347 million in cash between April 29 and June 27 and another 467 BTC for $14.4 million in July.
While MicroStrategy shares have more than tripled this year, Bitcoin prices have risen by over 76%. Around $4.5 billion is the value of its 152,800 Bitcoins.
MSTR’s overall revenue was $120.4 million, falling short of analyst expectations of $123.1 million.
MSTR’s shares were down 1% to $430 in after-hours trading on Tuesday.
