MicroStrategy Plans to Sell Its Own Shares to Buy More Bitcoins

The business intelligence company MicroStrategy has just released its second quarterly corporate report, and things are looking up. Additionally, the world’s largest corporate owner of bitcoins wants to add more to its growing stash.

On August 2, MicroStrategy announced its financial results for the second quarter, adding that it acquired an additional 467 bitcoins for $14.4 million in July and now owns 152,800 bitcoins.

MicroStrategy added that it acquired 12,800 bitcoins since the first quarter for $361.4 million, or $28,233 per bitcoin. As of July 31, the total investment in bitcoin amounted to $4.53 billion, or $29,672 per bitcoin.

MicroStrategy reported a net income of $22.2 million for the period. This is a strong contrast to the net loss of $1.1 billion for the same period last year. However, total revenues remained similar at $120.4 million.

The largest growth was recorded for subscription service revenues, which saw a 42 percent increase compared to last year, reaching $19.9 million.

– “We have effectively raised capital through our market equity program and used cash from operations to continue buying bitcoins for our balance sheet,” said Andrew Kang, Chief Financial Officer of MicroStrategy.

He added that this was achieved against a backdrop of increasing institutional interest, advancements in accounting transparency, and ongoing regulatory clarity for bitcoin.

In a recent filing with the Securities and Exchange Commission (SEC), MicroStrategy expressed its intention to sell up to $750 million in Class A common stock. Proceeds from the sale will be used to purchase more bitcoins and fund other operational expenses of the company.

MSTR shares rose 1 percent yesterday, closing at $436. The company’s shares have outperformed bitcoin itself this year, with a gain of 200 percent since January 1. Bitcoin has risen 80 percent in the same period.

Crypto markets are back in the green today following the recovery of the CRV token, easing fears of a DeFi ‘black swan’ event.

The price of bitcoin has increased by 1.8 percent and currently stands at $29,470 at the time of writing this article. Bitcoin is currently at a ten-day level; however, it has failed to break through $30,000.