MicroStrategy Incorporated (NASDAQ:MSTR) has acquired an additional 12,333 bitcoins at a net aggregate purchase amount of US$347 million, equating to US$28,136 per bitcoin, per Tuesday's quarterly update.
Total bitcoin holdings at the end of the second quarter were 152,333, obtained at a total cost of US$4.52 billion, averaging $29,668 per bitcoin.
At the time of writing, bitcoin was priced at US$29,524, meaning MicroStrategy would take a small writedown if it chose to liquidate all bitcoins at current spot prices.
To help pay for the group’s latest bitcoin haul, MicroStrategy issued US$335 million in new equity through an at-the-market offering
Cumulative equity issued since the third quarter of 2021 is now over US$1.7 billion at an average issuance price of US$424 per share.
MicroStrategy wrote down US$24 million in digital asset impairment charges for the quarter due to downward pressure on bitcoin’s spot price.
The remainder of the total US$132 million in expenses was divided between cost of revenues (US$26 million), sales and marketing (US$33 million), research and development (US$27 million) and general and administrative (US$21 million).
As the largest corporate holder of bitcoin, MicroStrategy has been called a hybrid software company and proxy bitcoin fund, though the company’s shares have actually outperformed the world’s largest cryptocurrency since adopting its bitcoin strategy in August 2020.
Since then, MicroStrategy shares have increased around 250% while bitcoin has gained 150%.
Similar to bitcoin, MicroStrategy’s share price is currently around half its all-time high during the unprecedented crypto bull run of 2021.
Though MicroStrategy founder and executive chairman Michael Saylor is largely concerned with bitcoin these days, his group’s software department is the thing that actually draws in revenues.
Total revenues in the second quarter declined one percent year on year to US$120.4 million.
Software licenses did generate US$35.4 million, showing a 4% year-on-year increase, while subscription services experienced significant growth, reaching US$19.9 million, marking a 42% year-on-year increase.
But operating losses for the quarter came to US$26.7 million.