MicroStrategy Moves Back to Profitability, Bolstered By Bitcoin Holdings

MicroStrategy Moves Back to Profitability, Bolstered By Bitcoin Holdings

MicroStrategy Returns to Profitability, Holding $4.4 Billion in Bitcoin

MicroStrategy, one of the largest corporate Bitcoin (BTC) holders in the United States, has swung back to profitability in Q2 2023, a shift widely attributed to the resurgence of Bitcoin prices. The company has revealed holdings to the tune of $4.4 billion in the cryptocurrency. MicroStrategy reported net earnings of $22.2 million in its Q2 2023 statement, published on August 1. It presents a complete turnaround against the backdrop of the net loss of $1.1 billion noted in Q2 2022.

As July 31, 2023, that their Bitcoin reserves had reached 152,800 Bitcoins, declared Andrew Kang, MicroStrategy CFO. The notable addition of 12,333 Bitcoins in the second quarter surpassed any quarterly increase since Q2 2021. The company's digital asset impairment losses for the quarter were at $24.1 million, a significant reduction from $917.8 million last year.

The enterprise is mulling over a stock sale to raise $750 million. According to the Securiteis and Exchange Commission filing on August 1, the fund might be deployed for further Bitcoin acquisition.

Terraform Labs Gets Judicial Approval for FTX Subpoenas

John Dorsey, a U.S. bankruptcy judge, has granted Terraform Labs the authority to serve subpoenas to FTX Trading and FTX US — a development which could bolster its defense against SEC fraud charges.

According to filed documents, lawyers representing FTX’s creditors agreed to the court order without any objections. The company is now seeking digital wallet records from FTX-associated parties to establish whether the exchange orchestrated an attack on the now-defunct Terra Luna ecosystem.

The unraveling of the TerraUSD stablecoin in May 2022 sowed the seeds of the subsequent crypto bear market, which ultimately led to FTX’s downfall in November. Terra co-founder Do Kwon is currently facing a four-month sentence in Montenegro on charges of travel document fraud.

New Restructuring Plan from Hints at Revival has presented a restructuring plan detailing the company's strategies to deal with an 'exceptionally large and complicated collection of claims.'

Interestingly, the document includes special 'shortfall' claim recognition by the two FTX exchange organizations against a third pool of general assets. The move aims to indemnify the exchanges for the unauthorized borrowing and misappropriation of assets allegedly committed by former CEO Sam Bankman-Fried and his closest collaborators.

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