KEYTAKEAWAYS
- MicroStrategy reports Q2 net loss of $102.6 million but continues Bitcoin acquisition strategy.
- Company now holds 226,500 BTC, purchased at an average price of $36,821 per Bitcoin.
CONTENT
Software giant acquires additional 169 BTC in July, bringing total holdings to 226,500 BTC worth $14.7 billion. Company introduces ‘BTC Yield’ as new KPI, targeting 4-8% annually over next three years.
MicroStrategy, the American software firm co-founded by Bitcoin maximalist Michael Saylor, released its second-quarter earnings report on Thursday, revealing a net loss of $102.6 million. Despite this financial setback, the company remains committed to its Bitcoin strategy, expanding its holdings in the world’s leading cryptocurrency.
In July, @MicroStrategy acquired an additional 169 BTC for $11.4 million and now holds 226,500 BTC. Please join us at 5pm ET as we discuss our Q2 2024 financial results, the outlook for $BTC, and our #Bitcoin development strategy. $MSTRhttps://t.co/cfGPc42jfM
— Michael Saylor⚡️ (@saylor) August 1, 2024
The report showed total revenue of $111.4 million and a loss of $200 million in Q2 2024, compared to a $26.7 million loss in the same period last year. However, MicroStrategy’s subscription services business saw a 21% year-over-year increase, generating $24.1 million in revenue.
In July, MicroStrategy acquired an additional 169 BTC for $11.4 million, bringing its total Bitcoin holdings to 226,500 BTC, valued at approximately $14.7 billion. The company reported an average purchase price of $36,821 per Bitcoin. Since the beginning of Q2 2024, MicroStrategy has acquired 12,222 Bitcoin for $805.2 million.
MicroStrategy President and CEO Phong Le stated, “We remain laser-focused on our Bitcoin development strategy and intend to continue to achieve positive ‘BTC Yield,’ a new KPI we’re introducing, targeting 4-8% annually over each of the next three years.”
The company also expressed optimism following the recent Bitcoin 2024 conference in Nashville, citing improved understanding of Bitcoin and increasing support from bipartisan politicians and institutions.
>> Also read: “These Factors” May Trigger Bitcoin’s Next Potential Surge
In Q2, MicroStrategy raised $800 million by issuing 2.25% convertible notes due 2032 and redeemed $650 million notes due 2025. CFO Andrew Kang highlighted the company’s “intelligent leverage” strategy, which achieved a ‘BTC Yield’ of 12.2% year-to-date.
As the largest institutional holder of Bitcoin, MicroStrategy continues to expand its holdings. In June, the company purchased 11,931 BTC worth approximately $786 million after issuing $700 million in unsecured senior convertible notes.
MicroStrategy’s stock (MSTR) closed at $1,511 on Thursday but was trading at $1,570 after hours, up 3.85%.
>> Also read: Michael Saylor｜21 Rules of Bitcoin: Why You Should Never Sell BTC
