MicroStrategy released their financial results for the second quarter of 2023, which ended on June 30th, and revealed that they had purchased 152,800 BTC as of July 31st, 2023 for a cumulative cost of $4.53 billion, which averages out to $29,672 per cryptocurrency.
The company highlighted the recent surge in institutional interest in the crypto market, however, they noted that there are still various challenges such as regulatory actions. In the first quarter of 2023, they acquired 12,800 BTC with an average price of $28,233, costing them a total of $361.4 million. During this time, their stock price also increased by 200%.
In terms of their core business, their software license revenue rose by 4% compared to the previous year and subscription services revenue saw a 42% increase year-over-year.
The accumulation of Bitcoin has reinforced MicroStrategy’s position as the world’s largest institutional holder of the cryptocurrency. This could potentially be challenged in the near future, however, with the SEC’s decision on approving spot Bitcoin ETFs from companies like Blackrock and Citadel.
Andrew Kang, the Chief Financial Officer at the company, commented that the buying of Bitcoin has continued “Despite promising backdrop of increasing institutional interest, progress on accounting transparency, and ongoing regulatory clarity for Bitcoin”. They have also indicated growth in the current quarter, with an increase in their enterprise cloud platform’s recurring revenue despite the current macroeconomic headwinds.
