MicroStrategy Cuts Crypto-Related Impairment Charge in Q2


MicroStrategy Inc – a well known institutional holder of Bitcoin – announced their return to profitability in the second quarter. Despite this, their shares decreased by 2.0% after-hours.

The enterprise intelligence firm purchased an additional 12,333 Bitcoin in Q2. This is the largest amount they have purchased in a quarter in about two years. In total, they now hold 152,800 BTC on their balance sheet, worth about $4.4 billion. The impairment cost associated with their crypto holdings was narrowed to $24.1 million, compared to near a billion-dollar last year. Andrew Kang, the Chief Financial Officer stated in the press release:

“We continued to increase our bitcoins and did so against the promising backdrop of increasing institutional interest and ongoing regulatory clarity.”

Bitcoin is up around 80% this year.

In the recently concluded quarter, MicroStrategy earned $22.2 million, or $2.35 a share (adjusted) on $120.4 million in revenue – down 1.0% on a year-over-year basis. This surpassed analyst estimates of $1.64 a share and $126 million respectively. CEO Phong Le stated:

“Growth in our recurring revenue this quarter illustrated the strength of our business cloud platform, despite ongoing macroeconomic headwinds.”

This news comes shortly after a TD Cowen analyst, Lance Vitanza, dubbed MicroStrategy the best way for institutional investors to gain exposure to Bitcoin. He sees upside in the software stock to $520 – a 21% premium on its current price.

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