MicroStrategy added 467 BTC to balance sheet in July

Michael Saylor’s MicroStrategy released earnings on Tuesday after the bell. 

The stock is up 200% year to date and is inching closer to its 52-week high of $478 with its Tuesday closing price of $434. Investors reacted somewhat negatively to the earnings, sending the stock down slightly after hours.

The company owns 152,800 bitcoins as of July 31, having added 467 BTC more than the 152,333 BTC it reported at the end of June. 

According to Andrew Kang, MicroStrategy’s chief financial officer: “The addition in the second quarter of 12,333 bitcoins being the largest increase in a single quarter since Q2 2021.”

In total, the company spent $4.53 billion, marking a price of $29,672 per bitcoin. Bitcoin sits around $29,000 currently, up over 27% over the past year, according to data from CoinGecko. 

The company previously bought more than 13,000 bitcoins, according to a filing from late June. 

However, the company included an impairment charge, stating that “operating expenses include impairment losses on the Company’s digital assets, which were $24.1 million during the second quarter of 2023, compared to $917.8 million in the second quarter of 2022.”

Dan Weiskopf, co-portfolio manager of Amplify Investments Transformational Data Sharing ETF, previously told Blockworks that “few investors and companies are actually positioned to see revenue growth from AI” but MicroStrategy might be the exception, though clarity is needed.

Last week, TD Cowen released a note on MicroStrategy initiating coverage on the company and gave it a $520 price target. Analysts wrote that the company “represents a new kind of firm, which generates dollar-based cash flow from enterprise software and cloud services but then converts its excess cash flow – on an effectively-leveraged basis – into Bitcoin. “

“While investors may ultimately be able to buy bitcoin outright or through potential Bitcoin ETFs, network and management fees can erode returns. We view MSTR as superior with respect to simplified custody, liquidity, exposure to derivatives, downside protection, operating leverage, and financial leverage,” the analysts said.

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