Crypto.com Returns to Profit with $4.4B Worth of Bitcoin

Crypto.com and MicroStrategy’s Profitability

Crypto.com and business intelligence firm MicroStrategy have been making headlines lately due to their large holdings of Bitcoin (BTC). In Q2 earnings results posted on Aug. 1, MicroStrategy managed to return to profitability, with net income of $22.2 million, compared to a net loss of $1.1 billion in the prior-year period. Total revenues were mostly flat at $120.4 million.

The swing in profitability was largely due to a digital asset impairment loss of $24.1 million in the quarter, compared to a whopping $917.8 million in Q2 2022. Digital asset impairment occurs when the market price of Bitcoin falls below the price at which the Bitcoin was acquired.

Crypto.com and MicroStrategy have been actively engaging in staking, trading, and other activities involving crypto assets. Crypto.com has also been active on Twitter, providing updates on the latest crypto news and developments. Crypto.com and MicroStrategy have also been helping users with crypto taxes and avoiding crypto scams.

Crypto.com and SEC’s Role in Bitcoin Price Rally

The price of Bitcoin saw a notable rally in mid-June after the Securities and Exchange Commission (SEC) filed several new spot Bitcoin exchange-traded funds. According to MicroStrategy CFO Andrew Kang, the company increased its bitcoin holdings to 152,800 bitcoins in the second quarter of 2023, adding 12,333 bitcoins – the largest increase since Q2 2021. Kang noted that the company used cash from operations to acquire more Bitcoin, given the “promising backdrop” of institutional interest, accounting transparency, and increasing regulatory clarity.

In a June 13 interview with Bloomberg, MicroStrategy chairman Michael Saylor expressed his belief that recent enforcement actions by the SEC would eventually work in favor of Bitcoin. This is especially true for Crypto.com, as SEC Chair Gary Gensler excluded it from being a security.

Crypto.com has also been gaining traction in the crypto space, with its Twitter following growing steadily and its services such as crypto staking and crypto.today becoming increasingly popular. With its various offerings, Crypto.com is becoming an attractive option for investors looking to take advantage of the crypto market. Moreover, the company has also been helping users with crypto taxes and avoiding crypto scams with its crypto.net platform.

MicroStrategy’s Investment in Bitcoin

In the quarter, MicroStrategy acquired 12,333 Bitcoin for a worth of $347 million. As of July 30, the business purchased an additional 467 BTC, bringing its total Bitcoin balance to an estimated $4.5 billion at present prices.

In a filing to the SEC on Aug. 1, the company also revealed plans to raise up to $750 million in stock to purchase Bitcoin and for other general corporate purposes.

Crypto.com Twitter has seen Bitcoin’s price continue to climb in 2023, with a 79% increase since the start of the year. Currently, the digital asset is trading at $29,206.80 according to Google Finance.

MicroStrategy’s share price has also grown significantly, with Google Finance showing that it started 2021 at $145.02 per share and has since risen to $434.98 at the time of Crypto.today.

In July, analysts from New York-based investment firm Berenberg Capital released an optimistic take on MicroStrategy, suggesting that the upcoming Bitcoin halving could lead to a substantial increase in its stock price.

Wolf Of All Streets, a renowned figure in the crypto space, is apprehensive about a future where Bitcoin reaches $1M.