Original title: "A review of the profit and loss situation of 7 listed companies investing in Bitcoin"

Original source: Odaily Star Daily

Although traditional internet giants' increased holdings of Bitcoin are often for the purpose of diversified asset allocation (alternative investments), industry insiders often view it optimistically as a bullish signal for crypto, and even follow suit with the idea of "following smart money" to invest.

However, recent financial reports have revealed that in the bear market of cryptocurrency, the Bitcoin positions of large companies are also mostly in unrealized losses. Different enterprises have different investment strategies, some choose to reduce holdings and take profits, some choose to hold and not sell (HODL), and some choose to buy more and lower their average holding costs.

Odaily Star Daily has compiled business summaries, stock performance, latest developments, and Bitcoin holdings information (current quantity, average cost, profit and loss situation) for seven companies: Microstrategy, Galaxy, Tesla, Block Inc., Hut 8, Marathon Digital Holdings, and Meitu. It is worth noting that financial report disclosures may have information lag and should not be used as the sole investment reference indicator.

Microstrategy

MicroStrategy is an enterprise that provides highly specialized business intelligence, mobile software, and cloud solutions. The company was founded in 1989 and is headquartered in Tysons Corner, Virginia, USA. MicroStrategy offers a variety of analytics and mobile software solutions for data visualization, reporting, and dashboards. These solutions are often used to help businesses better understand, monitor, and leverage their data.

The company's latest product, MicroStrategy ONE, is a comprehensive, modern, open, and cloud-driven analytics platform designed to be a single solution for all analytical use cases. From self-service data analysis and business reporting to advanced applications and embedded solutions, the platform aims to "unleash the power of data" to help businesses gain a competitive edge.

Under the leadership of CEO Michael Saylor, MicroStrategy has also become one of the notable companies investing in Bitcoin on a large scale, using it as a strategy for asset reserves.

According to the Q2 2023 financial report, the company recorded a depreciation expense of $24.1 million for its holdings of Bitcoin in the second quarter, compared to $917.8 million in the same period last year and $18.9 million in the first quarter of this year. The impairment of the company's digital assets reflects the decline in Bitcoin prices relative to the acquisition price.

MicroStrategy CFO Andrew Kang stated in a statement: "As of July 31, 2023, the number of bitcoins we hold has increased to 152,800, of which 12,333 were added in the second quarter of this year, the largest quarterly increase since the second quarter of 2021. We effectively raised funds through our market equity plan and continued to increase our bitcoin holdings on our balance sheet using operating cash. We did this against the backdrop of increasing institutional interest, progress in accounting transparency, and clearer regulation of bitcoin."

Currently, the average price of Bitcoin held by Microstrategy is about $29,668.

According to Coingecko's data, Microstrategy's total cost of holding Bitcoin is $4.127 billion, and these Bitcoins are currently worth about $3.97 billion, accounting for 0.728% of the total Bitcoin supply. The data shows that 46% of MicroStrategy's Bitcoin assets were purchased in 2020. In the third and fourth quarters of 2020, MicroStrategy purchased 38,250 BTC (average price of $11,151) and 32,220 BTC respectively. As of August 17th, these BTC accounted for 46.12% of MicroStrategy's Bitcoin assets.

As of the current date, MicroStrategy's total market value is $4.951 billion, with a stock price of $351.48 per share. Compared to about $246.91 six months ago, the stock price has risen significantly, with a growth of about 42%. However, the stock has also experienced fluctuations during the year, with the highest point occurring in early July when the stock price reached about $475.09. Since the highest point of the year, the stock price has fallen somewhat. This price fluctuation may reflect the market's multifaceted evaluation of MicroStrategy's strategy in business intelligence and Bitcoin investment.

Galaxy Digital

Galaxy Digital is a financial services and investment management company based in New York City, specializing in digital assets and blockchain technology. Since its establishment in 2018, the company has been building a comprehensive financial platform, including three complementary operating businesses: global markets, asset management, and digital infrastructure solutions. Galaxy Digital aims to combine financial complexity with technological expertise, connecting institutions with Web3 innovation.

The company provides a range of financial services, including trading, loans, strategic consulting services, institutional investment solutions, proprietary bitcoin mining and custody services, network validation services, and the development of enterprise custody technology. Galaxy Digital has multiple offices worldwide, including North America, Europe, and Asia.

Founded by experienced hedge fund manager and former Goldman Sachs partner Mike Novogratz, Galaxy Digital has been at the forefront of driving the adoption and acceptance of cryptocurrency and blockchain technology in the mainstream financial world. With its diversified business portfolio and global influence, Galaxy Digital aims to provide comprehensive cryptocurrency and digital asset-related services to both retail and institutional investors as the CEO.

According to the Q2 2023 financial report, Galaxy Digital has performed well amidst ongoing uncertainty and regulatory pressure. Novogratz stated that the company is moving towards long-term growth due to prudent risk management practices and a strong balance sheet.

Financially, the net loss for the second quarter was 4600 million US dollars, a significant decrease compared to the net income of 134.2 million US dollars in the first quarter of 2023. Operating expenses in the second quarter were 85.2 million US dollars, a decrease of 6% compared to the previous quarter and a 34% decrease year-on-year. The company's partner capital (i.e. equity) was 1.5 billion US dollars at the end of the quarter, a 3% decrease from the end of the first quarter of 2023, but liquidity remained strong with 696 million US dollars as of June 30, 2023.

Regarding business performance, Galaxy Global Markets (GGM) trading revenue was $59.5 million, a decrease of 54% compared to the previous period, mainly due to a decline in net realized gains from digital assets and derivatives. Investment banking revenue was $0.45 million, mainly due to a slowdown in merger and capital raising activities. Galaxy Asset Management (GAM) asset management revenue was $33.8 million, an increase of 619% compared to the previous period, mainly due to an increase in net realized gains from investments on its venture capital platform. Galaxy Digital Infrastructure Solutions (GDIS) mining revenue was $15.4 million, an increase of 51% compared to the previous period, mainly due to an increase in revenue from proprietary mining activities.

Currently, Galaxy holds approximately 12,545 bitcoins, which are currently worth approximately $326 million.

Compared to other companies, Galaxy's stock price has relatively small fluctuations, currently priced at $5.08. In the past year, the lowest price was $3.33 and the highest price was $8.3.

Galaxy stock price within one year. Source: Yahoo Finance

Tesla

As familiar to car consumers, Tesla, Inc. is an American electric car and clean energy company, with Elon Musk serving as CEO and major shareholder. The company was founded in 2003, initially starting with the production of high-performance electric sports cars, but later expanding to a wider consumer market, launching various electric vehicle models such as Model S, Model X, Model 3, and Model Y.

In addition to electric vehicles, Tesla is also involved in renewable energy products, including solar panels, solar roofs, and home and commercial energy storage solutions such as Powerwall, Powerpack, and Megapack. The company's goal is to accelerate the world's transition to sustainable energy.

In the second quarter of 2023, Tesla's financial performance exceeded Wall Street's expectations. The company reported a net income growth of 20%, reaching $2.7 billion, which was mainly due to cheaper raw materials that helped offset the decline in vehicle prices. On the other hand, although new car deliveries increased by 83% during the period from April to June, revenue growth was not as strong, rising only 47% to $24.9 billion. However, this revenue data still exceeded the average expectations of analysts surveyed by FactSet, which was $24.2 billion.

In the stock market, Tesla is also highly regarded. Its stock price has experienced significant fluctuations, but overall it has shown a strong growth trend, becoming one of the world's highest-valued car manufacturers. From the beginning of the year at $108.1 to the current $245.01, Tesla's stock price has experienced significant fluctuations but overall has been on an upward trend since 2023. The highest point of the stock price reached over $290. This growth reflects the market's positive view of Tesla's continued innovation and market leadership in the electric vehicle and renewable energy fields. Currently, the company's total market value has reached $77.7659 billion.

In the field of cryptocurrency, Tesla has been continuously watched for its large-scale holdings of Bitcoin, support for cryptocurrency payments, and Musk himself being one of the KOLs in the industry. Tesla has not bought or sold Bitcoin for four consecutive quarters, and currently holds 10,500 Bitcoins, which is worth approximately $272 million and accounts for 0.05% of the total Bitcoin supply.

However, Tesla has suffered significant losses due to its investment in Bitcoin: Tesla's total cost of purchasing Bitcoin was 336 million US dollars, exceeding its current value by 23.5%.

Block Inc.

Block Inc. (formerly Square Inc.) is a US multinational technology conglomerate founded by Jack Dorsey and Jim McKelvey in 2009. The company launched its first platform in 2010 and has been listed on the New York Stock Exchange since November 2015 with the stock code SQ.

With the expansion of its business, Block Inc. now has multiple business segments. Cash App is a mobile application that allows users to transfer money between each other and between users and businesses. Afterpay is a "buy now, pay later" service. Weebly is a website hosting service, while Tidal is a subscription-based music, podcast, and video streaming service that offers audio and music videos.

Block Inc. is not only committed to providing financial and payment solutions, but also constantly entering emerging financial technology fields, including cryptocurrencies. Overall, the company aims to simplify the payment process and make it more seamless and convenient through its diverse and comprehensive financial solutions.

Block Inc's stock price this year. Source: Yahoo Finance

The stock price of Block Inc. has shown significant volatility this year. It has dropped from $64.64 at the beginning of the year to $58.17 currently, with a market value of $35.488 billion. It is worth noting that the stock reached its highest point in early February, at around $88, but has since declined. Although it has been on a downward trend since the beginning of the year, the overall trend is somewhat correlated with the US stock market, and not as strongly correlated with cryptocurrencies as other stocks. Its market value remains relatively stable, indicating that the market still has some confidence in this diversified financial technology company.

Block Inc. performed well in the second quarter of 2023, especially in a challenging economic environment. The company's net revenue for the three months was $5.3 billion, an increase from $4.4 billion in the same period last year and exceeded Refinitiv's estimate. The fintech company's gross profit increased by 27% year-on-year, reaching $1.87 billion. In addition, the company raised its EBITDA forecast for 2023 from $1.3 billion to $1.5 billion.

The main business of Block, Cash App, saw a gross profit growth of 37%, reaching $968 million. At the same time, Square's gross profit also grew by 18%, to $888 million. Company Chairman Jack Dorsey said the company will continue to focus on expanding into international markets, but is also seeking to control costs, including reviewing stock-based compensation. He also mentioned that the company has begun to recruit more precisely, focusing on key roles and paying more attention to performance management. Adjusted earnings per share for Block in the second quarter were 39 cents, exceeding analysts' forecast of 36 cents.

According to Coingecko's data, Block currently holds 8027 bitcoins with a holding cost of 220 million US dollars, which is now worth approximately 209 million US dollars, with a relatively small loss.

Hut 8 

Hut 8 Mining Corp. is a Canadian Bitcoin mining company that focuses on mining Bitcoin through the use of advanced hardware and data center resources. The company is one of the largest publicly traded Bitcoin mining companies in North America and has significant computing power. Hut 8 is not just a Bitcoin mining enterprise, it also offers other services and solutions related to cryptocurrency, such as high-performance computing.

Hut 8 typically sets up its mining facilities in areas with lower energy costs, such as some remote locations in Canada, to reduce operating costs and increase efficiency. This allows the company to remain competitive in the highly competitive cryptocurrency mining market.

Hut 8's data center location. Source: Hut 8 official website

From the beginning of the year, Hut 8's stock price has risen from $0.818 to the current $2.37. The stock has shown significant volatility within 2023, but overall it is on an upward trend. The stock reached its annual high of about $4 in mid-July, followed by a decline. Nevertheless, compared to the beginning of the year, the stock price has still grown considerably. This price dynamic reflects investors' views on the company's performance and potential in the Bitcoin mining industry. Currently, Hut 8 has a total market value of $526.7 million.

In the second quarter of 2023, Hut 8's revenue decreased significantly to $19.2 million, compared to $43.8 million in the same period last year. During this period, the number of bitcoins mined by the company also decreased by nearly 58%, with only 399 mined, due to factors such as the increase in the difficulty of the Bitcoin network, the suspension of operations at the North Bay factory, and the ongoing power supply issues at the Delanhele factory. Its high-performance computing (HPC) business also declined slightly, generating only $4.2 million in monthly recurring revenue, a decrease from $4.7 million in the same period last year. As of the end of the quarter, the company's computing power reached 2.6 EH/s (excluding the North Bay factory) and held 9,136 self-mined bitcoins. During this quarter, the company realized $14.7 million in revenue by selling 396 bitcoins.

Currently, Hut 8 holds a Bitcoin market value of approximately 242 million US dollars.

Last week, Hut 8 announced that it will merge with U.S. Data Mining Group, Inc. (operating under the commercial name "US Bitcoin Corp" or "USBTC"). The transaction is expected to create a new company called "New Hut" with headquarters in the United States. The new company will focus on efficient Bitcoin mining, diversified revenue streams, and industry-leading environmental, social, and governance (ESG) practices.

Hut 8's CEO Jaime Leverton said they expect to receive approval from the US Securities and Exchange Commission (SEC) for the registration statement of "New Hut" in the near future, and believe that after completing this merger, the new company will become a stronger and more dynamic business entity. This entity will be supported by a large amount of fiat currency income generated from Bitcoin and strong North American-based custody, mining infrastructure, and high-performance computing operations.

Marathon Digital Holdings

Marathon Digital Holdings (formerly known as Marathon Patent Group) is a US company that primarily focuses on Bitcoin mining. The company was founded in 2010 and was initially a company focused on intellectual property (IP), but later transformed into an enterprise dedicated to cryptocurrency mining and related activities.

Marathon Digital Holdings operates large-scale Bitcoin mining facilities and has multiple data centers throughout the United States. These data centers are equipped with high-performance mining hardware designed to mine new Bitcoins by solving complex mathematical problems and thus participate in maintaining the Bitcoin network.

This company aims to become one of the largest and most efficient Bitcoin mining enterprises in North America. Due to its large-scale electricity demand, Marathon Digital Holdings also focuses on finding sustainable and cost-effective energy solutions.

In the mid-year financial report released, Marathon's Chairman and CEO, Fred Thiel, said:

We held approximately $113.7 million in unrestricted cash and cash equivalents, as well as approximately 12,538 bitcoins with a market value of approximately $380 million as of June 30. Despite a decrease of $11.2 million in our cash position from the first quarter, we acquired 1,072 bitcoins with a market value of approximately $32.7 million.

We accelerated our progress in the second quarter, significantly improving our hash rate and efficiency... In the second quarter, we increased our effective hash rate from 11.5 to 17.7 EH/s. By growing our hash rate faster than the rest of the network and improving our uptime, we also increased our bitcoin production. In the second quarter, we produced a record 2,926 bitcoins, representing approximately 3.3% of the available bitcoin network rewards for the period."

However, Marathon's profits and revenue are both lower than analysts' expectations. Currently, Marathon holds about 12,964 bitcoins, which are currently worth about $336 million. However, its purchase cost is only $189 million, achieving a return rate of about 78%.

As of now, the stock price of Marathon Digital Holdings is $12, which is a significant increase from the approximately $4.09 at the beginning of the year, almost tripling in value. The highest point reached during the year was $19.88. The company's current market value is $2.091 billion. Such fluctuations in stock price and market value may reflect the market's high level of attention to the company's strategies and performance in Bitcoin mining and cryptocurrency investments. Despite a slight drop from the year's highest point, the company's stock price remains strong compared to the beginning of the year, which may indicate that investors hold an optimistic view of its long-term prospects. However, given the volatility of the cryptocurrency market, this stock performance may change at any time.

美图

translates to

Beautiful Pictures

in English.

Meitu is a Chinese technology company that is listed on the Hong Kong Stock Exchange and focuses on developing mobile applications and smartphones. The company was founded in 2008 and is headquartered in Xiamen, Fujian Province. Its most well-known product is the photo editing and beautification application, Meitu Xiuxiu, which has hundreds of millions of users worldwide. In addition to basic photo editing functions, the application also provides various beauty filters and AI-driven photo enhancement tools.

Meitu established its R&D center, MT Lab, in 2010, focusing on artificial intelligence and image innovation in fields such as computer vision, deep learning, and computer graphics.

As of December 2022, the monthly active users (MAU) of Meitu reached 243 million, with nearly 80 million from overseas markets. These international users are distributed in 22 countries and regions, each with 10 million or more users, including Indonesia, Thailand, Brazil, Pakistan, the United States, Vietnam, Japan, Bangladesh, the Philippines, South Korea, Malaysia, Iran, Mexico, Nigeria, Canada, Turkey, Russia, Myanmar, South Africa, the United Kingdom, and Nepal.

In April 2021, Meitu announced a cryptocurrency holding of nearly $100 million. According to the latest financial report filed in July, Meitu reported holding approximately 940 bitcoins and 31,000 ethers, with a total cost of $49.5 million and $50.5 million, respectively. Compared to the reported scale in 2021, Meitu's digital currency assets have decreased by over $40 million. This reduction is twice the size of the previous quarter.

其中，成本近 5000 万美元的比特币现在价值仅为 2445 万美元左右。

Among them, the Bitcoin that cost nearly 50 million US dollars is now worth only about 24.45 million US dollars.

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