According to CoinDesk, according to MicroStrategy's latest financial report released on Tuesday, the company recorded $24.1 million in impairment expenses for its Bitcoin holdings in the second quarter, compared with $917.8 million in the same period last year and $18.9 million in the first quarter of this year. The company's digital asset impairment reflects the decline in Bitcoin prices relative to the price at which Bitcoin was acquired.
“As of July 31, 2023, our holdings of bitcoin increased to 152,800, including an increase of 12,333 in the second quarter of this year, the largest quarterly increase since the second quarter of 2021,” MicroStrategy Chief Financial Officer Andrew Kang said in a statement. “We have effectively raised funds through our market equity program and used operating cash to continue to increase bitcoin on our balance sheet. We do this against the backdrop of growing institutional interest, progress in accounting transparency, and increasing regulatory clarity on bitcoin.”
Separately, MicroStrategy founder Michael Saylor said on Twitter that the company purchased 12,333 bitcoins for $347 million between April 29 and June 27, and 467 bitcoins for $14.4 million in July.
Bitcoin prices have risen about 76% this year, while MicroStrategy's shares have more than tripled. Its holdings of 152,800 bitcoins are now worth about $4.5 billion.
Overall, MicroStrategy reported revenue of $120.4 million, missing analysts' expectations of $123.1 million.