MicroStrategy Now Holds 226,500 BTC, Buys More Despite Being Billions in Profit

A quarterly earnings report by software firm MicroStrategy showed that it bought more Bitcoin in July despite having billions in profit. The Thursday attestation revealed that MicroStrategy bought 169 BTC in July, taking its tally to 226,500 BTC.

The Michael-Saylor-owned firm started Q2 with 214,278 BTC and went on to buy 12,222 BTC during the quarter. MicroStrategy holds 1.07% of Bitcoin’s entire supply at a total cost of $8.3 billion and an average cost of $36,821 per bitcoin as of July 31st. The firm’s portfolio is arguably the most profitable Bitcoin-holding wallet in the crypto sector, with its gains hitting $7.4 billion earlier in the week when Bitcoin traded above $70,000.

MicroStrategy’s Buying More

MicroStrategy is following through on Saylor’s commitment to perpetual Bitcoin purchases after announcing a new fundraising round on Thursday. In a regulatory filing with the Securities and Exchange Commission (SEC), MicroStrategy outlined its plan to raise an additional $2 billion for ‘general corporate purposes, including the acquisition of Bitcoin.’

The Bitcoin development firm further noted it would raise funds by selling its class A company shares. However, MicroStrategy did not state the exact time it would be pursuing this course.

“We intend to use the net proceeds from the sales of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement,” the firm stated.

Stock Pump Following Quarterly Loss

MicroStrategy’s MSTR stock pumped 6.5% following an underperforming quarter for the software firm. The firm posted a quarterly net loss of $102.6 million, or $5.74 per share, its second successive three-month negative earnings.

The loss came from an impairment charge of $180 million for its Bitcoin holdings. This was a notable increase from the $24.1 million charges the firm took in the second quarter of 2023. MicroStrategy also posted an operating revenue of $111.4 million and a subscription service revenue of $24.1 million.