MicroStrategy’s Bitcoin bet: After $800M BTC in July, eyes an extra $2B

• MicroStrategy added 12,222 BTC in Q2, worth over $800 million. 
• The firm planned to invest an extra $2 billion in BTC, a potential 15% increase in its investment. 

MicroStrategy revealed that it added $11 million in Bitcoin [BTC] in July, bringing its Q2 acquisition to 12,222 BTC, worth over $800 million.

At press time, the Bitcoin development company held an overall 226,500 BTC at a total cost of $8.3 billion. 

Commenting on the Q2 BTC strategy, Phong Le, president of MicroStrategy, called it “successful,” citing a 70% surge in market value for the firm’s holdings. 

“After yet another successful quarter for our bitcoin strategy, MicroStrategy today holds 226,500 bitcoins reflecting a current market value 70% higher than our cost basis.”

MicroStrategy seeking $2B BTC addition

Interestingly, the firm indicated that it wants to add about $2 billion worth of BTC, about a 15% increase on its current holdings. According to the firm’s CFO, Andrew Kang, the expected acquisition would be made with equity capital. 

“We continue to closely manage our equity capital, and are filing a registration statement for a new $2 billion at-the-market equity offering program.”

The move reinforced MicroStrategy founder Michael Saylor’s bullish stance, as illustrated by his recent projection that the BTC price could hit $3M per coin by 2045. 

Overall, MicroStrategy’s BTC holdings had unrealized profit worth over $7 billion, according to CryptoQuant data. 

Despite the remarkable bets on BTC and enhanced strategy in Q2, the firm’s net loss was $200 million over the same period.

Through the Q2 earning report, MicroStrategy also highlighted that the digital asset holdings suffered a loss of $180 million amidst a massive market drawdown over the same period. 

As of press time, MicroStrategy’s stock, MSTR, still held above $1500 despite a recent sell-off and a massive BTC drop to $62k on August 1st.

Based on year-to-date(YTD) performance, MSTR stood at 120% compared to BTC’s 45%.

This indicated that MicroStrategy investors enjoyed much better returns than their colleagues who sought direct exposure to BTC.