MicroStrategy, renowned for being the largest corporate holder of Bitcoin, has significantly expanded its cryptocurrency portfolio in the second quarter of 2024. The business intelligence software company acquired an additional 12,222 Bitcoin for a hefty $805 million.
This purchase throughout the quarter increases its total Bitcoin holdings to 226,500 BTC, now valued at around $14.7 billion at current market prices. The company’s all Bitcoin holdings are acquired at an average price of $36,821 per Bitcoin, amounting to a total investment of $8.5 billion. This means at the current market price, MicroStrategy is almost 75% in profit for its BTC holdings.
Big Loss
MicroStrategy disclosed a sizable net loss of $123 million on its Q2 earnings meeting, although lower than the $137 million loss noted in the same period of 2023. With quarterly revenue of $111.4 million, the company recorded a per-share loss of $5.74, a 7% drop year over year.
These figures fell short of analysts’ expectations, which had predicted a loss of $0.78 per share and revenue of $119.3 million, according to Bloomberg survey data.
Bitcoin Yield Platform
Despite the financial setbacks, MicroStrategy remains steadfast in its Bitcoin strategy. The firm introduced a new performance metric called “Bitcoin Yield,” which measures the percentage change over time in the ratio between its Bitcoin holdings and its diluted outstanding shares.
As of now, the Bitcoin Yield stands at 12.2% year-to-date, with a target range of 4% to 8% annually over the next three years.
More Acquisition Ahead
MicroStrategy’s CEO, Michael Saylor, continues to champion Bitcoin as a long-term store of value and a hedge against inflation. In a bid to raise more capital for future investments, MicroStrategy announced plans to file a registration form for a $2 billion at-the-market equity offering. Although the specific use of these funds was not disclosed, historical trends suggest that additional Bitcoin purchases are likely.
In tandem with its financial strategies, MicroStrategy has confirmed a 10:1 stock split, effective from August 7, as initially announced on July 11. This move aims to make the company’s shares more accessible to a broader range of investors.
In mid June, MicroStrategy revealed its plans to raise $500 million specifically for Bitcoin acquisitions. These notes aimed to be offered to qualified institutional buyers, aligning with the company’s strategy to further invest in Bitcoin. Shortly after, the company added another 11,931 BTC for $786 million.
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