Business intelligence firm MicroStrategy purchased an additional 12,222 Bitcoin for $805 million in the second quarter of 2024, bringing its total Bitcoin holdings to 226,500 BTC worth around $14.7 billion at current prices. 

In its Q2 earnings call, MicroStrategy posted significant losses of $5.74 per share on a quarterly revenue of $111.4 million, a 7% decline year-over-year.

The losses exceeded analyst’s expectations, which pegged a quarterly loss of $0.78 per share and $119.3 million in revenue, according to Bloomberg survey data.

Notably, the firm revealed a net loss of $123 million in Q2, a slight improvement from its net loss of $137 million in the same quarter of 2023.

The firm shared that its total holdings of 226,500 Bitcoin had been acquired for $8.5 billion at an average price of $36,821 per Bitcoin.

It also unveiled a new key performance indicator called “Bitcoin Yield,” which represents the percentage change over time in the ratio between the firm’s Bitcoin holdings and its diluted outstanding shares.

Diluted shares outstanding include all of the company’s common stocks and any additional shares created from convertible notes or exercising stock options.

MicroStrategy said its BTC yield currently stands at 12.2% year-to-date, noting that it would target a rate of between 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,” it said in a statement.

The company also confirmed that its 10:1 stock split — announced initially on July 11 — would be going forward effective Aug. 7.

More Bitcoin buying ahead?

MicroStrategy said it would file a registration form for a $2 billion at-the-market equity offering in a bid to raise further capital, though it did not share what the capital would be used for. 

Historically, MicroStrategy has raised capital to purchase additional Bitcoin.

MicroStrategy shares are trading at $1,500 at the time of writing, having fallen 6% on Aug. 2. The firm’s share price bounced 1.1% in after-hours trading following the release of its Q2 earnings, per TradingView data.

Source : Cointelegraph - Aug 2, 2024