- MicroStrategy acquired 12,222 BTC in Q2 2024, increasing its total holdings to 226,500 BTC, worth $14.7 billion
- The company reported a net loss of $123 million for Q2 2024, slightly better than the $137 million loss from the same quarter in 2023
- MicroStrategy introduced a “Bitcoin Yield” metric to track the performance of its BTC holdings relative to its stock, aiming for a 4-8% annual rate over the next three years
MicroStrategy, the big player in business intelligence, has kept up its big bet on Bitcoin by buying another 12,222 BTC in the second quarter of 2024.
The company has made some big new purchases, bringing its total holdings to a whopping 226,500 BTC, worth about $14.7 billion. Despite this huge investment, MicroStrategy has reported some pretty significant financial losses.
MicroStrategy Expands Bitcoin Holdings Despite Financial Losses
MicroStrategy, the business intelligence company, bought another 12,222 Bitcoin (worth $805 million) in the second quarter of 2024, bringing its total holdings to 226,500 BTC (valued at $14.7 billion). During its earnings call, MicroStrategy confirmed a loss of $5.74 per share and a quarterly revenue of $111.4 million, which is a 7% drop compared to the previous year.
The losses were way worse than analysts expected. They thought the company would lose $0.78 per share and make $119.3 million in revenue. The company saw a slight improvement in the second quarter, with a net loss of $123 million, compared to $137 million in the same period last year.
New Performance Metrics and Stock Split Announcement
MicroStrategy acquired its 226,500 BTC for a cool $8.5 billion, which works out to about $36,821 per Bitcoin.
The company also rolled out a new performance indicator called “Bitcoin Yield,” which measures the percentage change over time in the ratio of its Bitcoin holdings to diluted shares outstanding. This includes all of the company’s common shares as well as additional shares created from convertible notes or stock options.
MicroStrategy says its Bitcoin Yield is around 12.2% so far this year. The company wants to keep that at a steady 4-8% a year for the next three years. “The Company uses the Bitcoin Yield metric as a KPI to assess the performance of its BTC acquisition strategy to ensure it benefits shareholders,” the statement reads.
The company has also confirmed that its 10-for-1 stock split, initially announced on July 11, will take effect on August 7.
Conclusion
To sum up, while MicroStrategy keeps adding to its Bitcoin stash—up to 226,500 BTC now—the company’s facing some financial hurdles. Second-quarter losses have been steeper than anticipated, but the new “Bitcoin Yield” performance indicator could help guide future strategies.
With a stock split on the way and plans to raise more money, MicroStrategy’s future in the cryptocurrency market is one to keep an eye on.
