MicroStrategy, a publicly traded company and one of the largest holders of BTC has shared that it recently added 467 tokens to its BTC holdings. The added holdings have been acquired for $14.4 million, taking the total size to 152,800 BTC. The number stands true as of July 31, 2023, since the financials published are for the second quarter of the fiscal year 2023, ending with June.
The holding of 152,800 BTC is worth approximately $4.53 billion. This translates to $29,672 for every token. The value was effective at the time the announcement was published. It had changed to $29,574.60 by the time it went to the press. Acquisition of Bitcoin since the first quarter comes to 12,800 for a value of $361.4 million.
Other aspects of the financials are total revenue, software license revenue, and subscription services revenue. While the total revenue has fallen by a marginal number, others have witnessed a significant jump in the statistics. The total revenue by July 31, 2023, comes to $120.4 million. This is a 1% fall on a year-on-year basis.
Software license revenue and subscription service revenue are $35.4 million and $19.9 million, respectively. SLR is up by 4% on a Y-o-Y basis and 7% up on a constant currency basis. SSR is up by 42% on a Y-o-Y basis and 44% in the second segment. The same for total revenue stands at a flat wave.
Andrew King, the Chief Financial Officer at MicroStrategy, talked about increasing the BTC holding. Andrew stated that the holding increased to 152,800, with the second quarter addition being the highest till now. They have stated that 12,333 tokens were added in Q2 alone. The way this was done is interesting to note.
MicroStrategy raised capital via its at-the-market equity program. The same fund was then utilized to raise the holding of the digital asset so that the number was reflected in their balance sheet. Backing them in the decision is the transparency and regulatory clarity within the ecosystem. Institutional interest is on the rise as well, further assisting them to grow the size of their Bitcoin portfolio. Accounting transparency is another element that helped them.
Phong Le, the President & Chief Executive Officer of MicroStrategy, talked about the revenue aspect. They have expressed confidence in the MicroStrategy ONE platform, stating that it is one of the most important product innovations that their company has made in recent times. This represents a fundamental shift, added Phong while further quoting that they will now leverage the capabilities of artificial intelligence and business intelligence to upgrade their organization.
The recurring revenue of MicroStrategy has increased to demonstrate the strength of their cloud platform even during times when macroeconomic conditions are doing a decent job.
It is unclear what would be the size of their next BTC acquisition; however, one can assume that MicroStrategy will continue the moment with bullish sentiments.
