MicroStrategy narrowed its crypto-related impairment cost sharply in Q2

• MicroStrategy purchased one other 12,333 Bitcoin in its second quarter.
• The enterprise intelligence firm returned to profitability in Q2.
• MicroStrategy inventory has roughly tripled versus the beginning of 2023.

MicroStrategy Inc – one of the distinguished institutional holder of Bitcoin – says it returned to profitability in its second monetary quarter. Its shares are nonetheless down 2.0% after-hours.

MicroStrategy continued to purchase Bitcoin in Q2

The enterprise intelligence firm added one other 12,333 Bitcoin in Q2 – essentially the most it has purchased in 1 / 4 in about two years. In whole, it now has 152,800 BTC on the steadiness sheet price about $4.4 billion.

MicroStrategy narrowed the impairment cost associated to its crypto holdings within the second quarter to $24.1 million versus near a billion-dollar final yr. Andrew Kang – its Chief Monetary Officer stated within the press launch:

We continued to extend bitcoins and did so in opposition to the promising backdrop of accelerating institutional curiosity and ongoing regulatory readability.

Bitcoin is presently up about 80% for the yr.

MicroStrategy topped Q2 earnings estimates

MicroStrategy earned $22.2 million in its just lately concluded quarter that interprets to $2.35 a share (adjusted) on $120.4 million in income – down 1.0% on a year-over-year foundation, as per the press launch.

As compared, analysts have been at $1.64 a share and $126 million, respectively. Based on CEO Phong Le:

Progress in our recurring income this quarter illustrated the power of our enterprise cloud platform, regardless of ongoing macroeconomic headwinds.

The information arrives solely days after a TD Cowen analyst Lance Vitanza dubbed MicroStrategy one of the best ways for institutional traders to realize publicity to Bitcoin. He sees upside within the software program inventory to $520 – a few 21% premium on its present worth (discover out extra).