According to the documents submitted by MicroStrategy to the U.S. Securities and Exchange Commission (SEC), the company plans to issue and sell up to $750 million worth of Class A common stock. The net proceeds from this offering will be used for general corporate purposes, which may include purchasing Bitcoin and funding operations. Additionally, the company may use the proceeds for share repurchases or to repay corporate debt, depending on market conditions.
According to the latest financial report released by MicroStrategy on Tuesday, the company recorded a $24.1 million impairment expense on its holdings of Bitcoin in the second quarter. In the same period last year, the impairment expense was $917.8 million, and in the first quarter of this year, it was $18.9 million. The impairment of the company's digital assets reflects the decline in the value of Bitcoin relative to the acquisition cost of the Bitcoin.
MicroStrategy's Chief Financial Officer, Andrew Kang, stated in a declaration, “As of July 31, 2023, our holdings of Bitcoin have increased to 152,800 coins, with an additional 12,333 coins acquired in the second quarter of this year, marking the largest quarterly increase since the second quarter of 2021. We effectively raised funds through our market equity plan and continued to add to our Bitcoin holdings on our balance sheet using operational cash. We are doing this in response to the increasing interest from institutions, progress in accounting transparency, and the growing clarity in Bitcoin regulation.”
MicroStrategy's founder, Michael Saylor, stated on Twitter that the company purchased 12,333 Bitcoins for $347 million between April 29 and June 27, and in July, they bought 467 Bitcoins for $14.4 million. So far this year, the price of Bitcoin has increased by approximately 76%, while MicroStrategy's stock price has more than doubled. The 152,800 Bitcoins they currently hold are valued at around $4.5 billion.
Overall, MicroStrategy reported a revenue of $120.4 million, which is lower than the analysts' expectations of $123.1 million.