MicroStrategy made largest Bitcoin purchase since 2021 in Q2 2023 amid slight revenue decrease (2024)
MicroStrategy made largest Bitcoin purchase since 2021 in Q2 2023 amid slight revenue decreaseMike Dalton ·8 months ago· 2 min read
News ▸ US ▸ Bitcoin ▸ Earnings
The company purchased 12,333 BTC for $347 million in Q2 2023.
Mike Dalton
Aug. 2, 2023 at 4:00 am UTC
2 min read
Updated: Aug. 2, 2023 at 9:13 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Ad
In its Aug. 1 financial results, business intelligence firm MicroStrategy said it acquired substantial Bitcoin during Q2 2023.
Andrew Kang, Chief Financial Officer at MicroStrategy, said:
“The addition in the second quarter of 12,333 bitcoins [is] the largest increase in a single quarter since Q2 2021. We efficiently raised capital… and used cash from operations to continue to increase bitcoins on our balance sheet.”
In a separate presentation, the firm said that the 12,333 BTC it bought was purchased for $347 million at an average of $28,136 per Bitcoin.
However, those numbers only represent the company’s latest additions, not the total amount of Bitcoin it acquired. MicroStrategy said that, as of July 31, 2023, it had acquired 152,800 BTC for $4.53 billion or $29,672 per Bitcoin.
Despite those high estimates, the company said that the carrying value (the original cost of the asset, less any depreciation, amortization or impairment costs) of its Bitcoin was just $2.3 billion. That number reflects cumulative impairment losses of $2.196 billion since MicroStrategy’s first purchase and an average carrying amount per Bitcoin of $15,251.
MicroStrategy noted elsewhere that Bitcoin and its own MSTR stock have outperformed numerous other indexes and assets. MSTR has gained 254% since it adopted its Bitcoin strategy in August 2020, while Bitcoin itself has gained 145% since that date.
MicroStrategy otherwise reported total revenues of $120.4 million in Q2 2023, which represents a 1% decrease in revenue year-over-year.
Bitcoin in the bigger picture
Kang also positioned MicroStrategy’s purchases within broader industry developments, such as increasing interest from institutional investors and regulatory clarity around Bitcoin.
Kang also said that MicroStrategy is seeing progress regarding Bitcoin accounting practices. In May, the company submitted a letter to the Financial Accounting Standards Board (FASB) expressing support for a fair value accounting for crypto assets. It said this would allow it to provide a “more relevant view” of its Bitcoin holdings.
In its company profile, Microstrategy called Bitcoin a “dependable store of value” and described Bitcoin acquisition as one of its two main strategies alongside its enterprise software business.
UPDATE: Aug. 2, 2023, 9AM – MicroStrategy announced the sale of up to $750 million of its Class A stock on Aug. 1 potentially to fund additional Bitcoin purchases.
Mentioned in this article
Bitcoin MicroStrategy
Posted In: Bitcoin, US, Adoption, Earnings
Author
Mike Dalton Journalist at CryptoSlate
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
Editor Editor
Jacob Oliver
Former Editor at CryptoSlate
Jacob Oliver is a recovering academic and English teacher turned crypto journalist and web3 writer. He holds a Ph.D. from the University of Washington.
CryptoSlate on Substack cryptoslate.substack.com Your daily dose of must-have crypto news and deep dives. Direct to your inbox. Join 75,000+ subscribers
Ad
Latest US Stories
Bitcoin leads over $800 million global crypto ETP market rebound, overshadowing Ethereum outflowsCrypto 3 hours agoEthereum ended March with net outflows of more than $67 million.
Court rules Custodia Bank not entitled to Federal Reserve master accountLegal 3 days agoA summary judgment favored the Fed's Board of Governors and Kansas City bank.
CFTC’s Caroline Pham says KuCoin charges may infringe on SEC authorityRegulation 3 days agoPham distinguished ownership of fund shares and derivatives trading.
SBF to serve jail term in medium security prison near San Francisco, ordered to forfeit $11 BillionLegal 3 days agoSam Bankman-Fried will also be put under a 3 year supervision upon his eventual release.
Latest Bitcoin Stories
Bitcoin leads over $800 million global crypto ETP market rebound, overshadowing Ethereum outflowsCrypto 3 hours agoEthereum ended March with net outflows of more than $67 million.
Tether becomes seventh largest Bitcoin holder with recent $618 million purchaseCrypto 6 hours agoTether now owns 0.3% of Bitcoin's circulating supply.
Bitwise CIO expects institutions to inject over $1 trillion into Bitcoin via ETFsCrypto 4 days agoHougan posited that even a modest average allocation of 1% from global wealth managers to Bitcoin could result in approximately $1 trillion entering the space.
Google dives deeper into blockchain adding Bitcoin, EVM chains to ‘rich results’ indexingCrypto 4 days agoThis development aligns with Google’s growing involvement with crypto and blockchain technology.
Latest Alpha Market Report
Available exclusively viaHow Bitcoin options impact the crypto market Andjela Radmilac · 18 hours ago CryptoSlate’s latest report dives deep into Bitcoin options to better understand how they affect market sentiment and predict future movements and investor expectations.
Latest Press Releases
View All
GRAM: The “New Bitcoin” in the Telegram Ecosystem is Now Available on MEXC News Desk 10 hours ago
Maitreja Announces Launch of Innovative Social Network and App Suite with Blockchain Integration Chainwire 1 day ago
NobleBlocks: A New Approach to Scientific Publishing through Decentralized Science (DeSci) News Desk 2 days ago
Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.
Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
MicroStrategy stock fell sharply Tuesday after the company reported revenue and profit short of Wall Street's expectations. But it doesn't really matter. The software company is mostly a leveraged bet on Bitcoin prices, and the earnings miss was a technicality based on quirky crypto accounting.
Digital Assets: As of March 31, 2024, the carrying value of the Company's digital assets (comprised of approximately 214,278 bitcoins) was $5.074 billion, which reflects cumulative impairment losses of $2.461 billion since acquisition and an average carrying amount per bitcoin of approximately $23,680.
MicroStrategy stock is falling after a short seller said Thursday the company is overvalued. The hedge fund Kerrisdale Capital said it is long Bitcoin and short MicroStrategy, whose shares have rallied largely due to the soaring value of cryptocurrency owned by the company.
From the time of its initial public offering in June 1998 through March 2000, MicroStrategy, Inc., a software company whose securities are listed on NASDAQ, materially overstated its revenues and earnings contrary to Generally Accepted Accounting Principles ("GAAP").
Collectively, public companies own more than 321,224 BTC, equal to 1.52% of the total supply. Microstrategy, led by Michael Saylor, holds more bitcoin than any other public company. Microstrategy has acquired 226,331 BTC, which represents roughly 1.07% of the total supply.
Total debt on the balance sheet as of March 2024 : $3.61 B
According to MicroStrategy's latest financial reports the company's total debt is $3.61 B. A company's total debt is the sum of all current and non-current debts.
Key Points. After its latest acquisition binge, MicroStrategy now owns more than 1% of all Bitcoin in the world. The introduction of the new spot Bitcoin ETFs means that the "proxy stock" effect might wear off in 2024. MicroStrategy could already be significantly overpriced, based on the total valuation of its holdings ...
The person who holds the most bitcoin is believed to be Satoshi Nakamoto, the unknown figure behind its creation. Bitcoin has been a business interest for many years, but following the approval of spot bitcoin ETFs in January 2024, businesses accounted for the most bitcoin held.
Based on 5 Wall Street analysts offering 12 month price targets for Microstrategy in the last 3 months. The average price target is $2,300.40 with a high forecast of $2,890.00 and a low forecast of $1,800.00. The average price target represents a 56.98% change from the last price of $1,465.40.
Due to its massive exposure to the world's largest cryptocurrency, MSTR's stock price is tied to Bitcoin. Since April 2019, BTC prices have surged from $5,170 to about $66,500 today at the time of writing. Comparatively, MSTR stock has returned 910% in the last five years, crushing broader market returns.
MicroStrategy's core business has failed to impress investors, as revenue has risen from $480 million in 2020 to $496 million in 2023. Unlike other high-margin software companies, MicroStrategy reported an operating income of just $11 million in 2022, and this figure fell to $1 million last year.
Analysts expect MicroStrategy's revenue to climb at a CAGR of 3% from 2023 to 2026 as it expands its subscription services. However, that's still an anemic growth rate for a stock that trades at a whopping 61 times this year's sales.
According to the latest long-term forecast, MicroStrategy price will hit $1500 by the middle of 2024 and then $2500 by the end of 2025. MicroStrategy will rise to $3000 within the year of 2026, $3500 in 2028, $4000 in 2029 and $5000 in 2032.
Address: Suite 609 315 Lupita Unions, Ronnieburgh, MI 62697
Phone: +2424755286529
Job: District Education Designer
Hobby: Yoga, Gunsmithing, Singing, 3D printing, Nordic skating, Soapmaking, Juggling
Introduction: My name is Moshe Kshlerin, I am a gleaming, attractive, outstanding, pleasant, delightful, outstanding, famous person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
MicroStrategy made largest Bitcoin purchase since 2021 in Q2 2023 amid slight revenue decrease Mike Dalton · 8 months ago · 2 min read 
