- MicroStrategy reported revenue of $120 million and gross profit of $93 million in Q2 ‘2023.
- The company incurred an impairment charge of $24 million on its 152,333 BTC worth $2.3 billion.
- The Michael Saylor-led firm acquired 12,800 BTC in the second quarter of 2023.
- The company’s stock rose as much as 3% in after-hours trading.
U.S.-based business intelligence firm MicroStrategy has reported a revenue of $120.4 million for the second quarter of 2023. The Michael Saylor-led firm, which is the largest publicly traded corporate holder of Bitcoins, acquired 12,888 BTC in the second quarter for $361.4 million at an average price of $28,233 per Bitcoin.
MicroStrategy Stock Up 3% In After-Hours Trading
The second quarter financial results released by MicroStrategy earlier today showed that the firm recorded a gross profit of $93.3 million, with a gross margin of 77.5%. The company managed to return to profitability thanks to the recent surge in Bitcoin’s price.
However, MicroStrategy reported a $26.7 million loss from operations along with a net income of $26.7 million. The company also incurred impairment charges of $24.1 million on its Bitcoin holdings, which marked a 97% decline from the impairment charges of Q2 ‘2022.
“We efficiently raised capital through our at-the-market equity program and used cash from operations to continue to increase bitcoins on our balance sheet. And we did so against the promising backdrop of increasing institutional interest, progress on accounting transparency, and ongoing regulatory clarity for bitcoin.”
Andrew Kang, Chief Financial Officer at MicroStrategy
As of June 30, 2023, MicroStrategy held approximately 152,333 Bitcoins valued at $2.3 billion, which were purchased at an average price of$15,251. This amount reflected the cumulative impairment losses of $2.19 billion since acquisition. The company has spent a total of $4.53 billion to accumulate the BTC.
MicroStrategy beat the earnings per share (EPS) expectations by a whopping 249%. The company’s share price closed at $434 and gained nearly 3% in after-hours trading.
Source : Ethereum World News