The business intelligence company of Michael Saylor, MicroStrategy, disclosed its intentions to generate roughly $750 million through the sale of stocks to increase the amount of Bitcoins in the portfolio, which currently stands at 152,800 BTC, or $4.53 billion.
In addition, the platform reported the company’s net income of $22.2 million in the second quarter results report . This is a significant increase from the $1.1 billion loss recorded in the previous year.
CCN reached out to MicroStrategy for commentary but did not receive a reply at the time of publishing.
The cryptocurrency saw a surge when MicroStrategy announced in a recent filing to the Securities and Exchange Commission (SEC) that the platform plans to expand its Bitcoin portfolio by adding more BTC coins.
The statement said :
“We may offer and sell shares of our class A common stock having an aggregate offering price of up to $750,000,000 from time to time through one or more of the Agents, acting as our sales agents.”
Saylor, the executive chairman of MicroStrategy, reiterated the company’s excitement about accumulating Bitcoins earlier today on Twitter while providing an update on the platform’s acquisition of the cryptocurrency.
April saw MicroStrategy purchase 1045 Bitcoins for a total estimated cost of $29.3 million, not long after revealing a massive acquisition of 6,500 Bitcoins.
MicroStrategy added 12,333 Bitcoins to its second quarter, bringing its total holdings to $361.4 million from 12,800 in the first quarter. According to Chief Financial Officer Andrew Kang of the company:
“We efficiently raised capital through our at-the-market equity program and used cash from operations to continue to increase bitcoins on our balance sheet. And we did so against the promising backdrop of increasing institutional interest, progress on accounting transparency, and ongoing regulatory clarity for Bitcoin.”
Saylor started purchasing Bitcoin in 2020, claiming that the corporation needed to maintain less cash due to the inflation danger that was thought to be diminishing. A stagnation in software business revenue brought about the change.
Saylor resigned as CEO a year ago, stating he would concentrate on the Bitcoin component of the business’s two-pronged approach.
MicroStrategy’s activities remain unprofitable, with an operating loss of $26.7 million for the quarter. Due to previous write-downs of its Bitcoin assets, the corporation has delayed tax savings totaling over $700 million. The corporation has eliminated a valuation allowance against the tax assets now that the value of Bitcoin has increased.
On a conference call on Tuesday, August 1, Phong Le, who became CEO after Saylor became executive chairman, announced that he had taken on the duties of the company’s chief revenue officer, who had resigned. Some analysts claim that Saylor’s investments will also pay off ahead of Bitcoin halving.
Bitcoin had a significant increase of 1.92% after MicroStartegy’s disclosure. Before this, it was trading in the $28,000 region. With a market capitalization of $575,721,859,417 and a 24-hour trading volume of $19,688,414,825 at its current price of $29,434, Bitcoin continues to dominate the cryptocurrency industry.