MicroStrategy Q2 Earnings: Bitcoin Holdings Now Valued at $14.7 Billion
MicroStrategy’s shares saw a modest 1% increase in after-hours trading following the release of its Q2 earnings. The business intelligence firm reported a net loss of $123 million for the second quarter. Despite this, MicroStrategy continues its aggressive Bitcoin acquisition strategy, purchasing an additional 12,222 Bitcoin for $805 million in Q2 2024. This brings the company’s total Bitcoin holdings to 226,500 BTC, valued at approximately $14.7 billion at current prices.
During the Q2 earnings call, MicroStrategy revealed a significant loss of $5.74 per share on quarterly revenue of $111.4 million, a 7% decline year-over-year. These results fell short of analyst expectations, which predicted a quarterly loss of $0.78 per share and $119.3 million in revenue, according to a Bloomberg survey. However, the net loss of $123 million is a slight improvement from the $137 million loss reported in the same quarter of 2023.
MicroStrategy’s total Bitcoin holdings, acquired for $8.5 billion at an average price of $36,821 per Bitcoin, remain a focal point. The firm introduced a new key performance indicator (KPI) called “Bitcoin Yield,” representing the percentage change over time in the ratio between the firm’s Bitcoin holdings and its diluted outstanding shares. The current BTC yield stands at 12.2% year-to-date, with a target of 4%–8% annually over the next three years.
“The Company uses BTC Yield as a KPI to help assess the performance of its strategy of acquiring Bitcoin in a manner the Company believes is accretive to shareholders,” MicroStrategy stated.
Additionally, the company confirmed that its 10:1 stock split, announced on July 11, will take effect on August 7.
Looking ahead, MicroStrategy announced plans to file a registration form for a $2 billion at-the-market equity offering to raise further capital. While the specific use of the capital was not disclosed, historically, the company has raised funds to purchase more Bitcoin.
MicroStrategy shares are currently trading at $1,500, having fallen 6% on August 2. The share price rebounded by 1.1% in after-hours trading following the earnings release, according to TradingView data.
Featured image from: drj.com