In a dramatic turnaround, MicroStrategy announces a net profit of $22.2 million in the second quarter thanks to its massive investments in Bitcoin. With 152,800 BTC in hand, the company is back to success.
A winning strategy from MicroStrategy for the second quarter
Bet held (or almost) for MicroStrategy and Bitcoin! During the second quarter, the company demonstrated its ability to turn the previous year’s losses into record profits. The secret: a winning strategy centered on bitcoin (BTC).
According to The report published on 1er August, MicroStrategy generated net income of $22.2 million. This remarkable performance was supported by lower depreciation of digital assets. An impairment loss of just $24.1 million, compared to a whopping $917.8 million loss in the second quarter of 2022.
MicroStrategy used its cash to add more BTC to its balance sheet. In concrete terms, she succeeded in accumulating 12,333 BTC during the second quarter. This represents the largest increase in a single quarter since the second quarter of 2021. This increase thus propels the MicroStrategy portfolio to an impressive total of 152,800 BTC as of July 31, 2023.
The rise of BTC and its impact on MicroStrategy’s digital assets
The continued rise of digital assets, especially BTC, has been the driving force behind MicroStrategy’s success. The price of bitcoin has fluctuated between $25,000 and $30,700 in the second quarter. It showed a notable recovery in mid-June. This recovery boosted MicroStrategy’s confidence in the cryptocurrency, encouraging them to continue BTC purchases.
“The addition of 12,333 BTC in the second quarter was the largest increase in a single quarter since 2021,” explains MicroStrategy’s chief financial officer, Andrew Kang. The company further strengthens its position by buying an additional 467 BTC on July 30, 2023. This brings their total bitcoin balance at a value of $4.5 billion.
MicroStrategy’s bold strategy, focused on BTC accumulation, has therefore paid off. Also, the company remains optimistic about the future of bitcoin.
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