Highlights:
- MicroStrategy acquired 12,222 BTC in Q2, totaling 226,500 BTC.
- Revenue fell 7.4%, but Bitcoin Yield grew 12.2% year-to-date.
- Despite financial losses and price volatility, MicroStrategy remains committed to Bitcoin, boosting institutional interest.
On August 1, American business intelligence and software firm MicroStrategy Incorporated released its Q2 performance report. According to the report, the Michael Saylor-led firm purchased an additional 12,222 Bitcoin for $805 million in the second quarter of this year. As of July 31, MicroStrategy’s total Bitcoin holdings reached 226,500 BTC, costing $8.3 billion, or $36,821 per Bitcoin.
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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
Revenue Declines 7.4% in Q2
Second-quarter revenue was $111.4 million, down from $115.2 million in the prior quarter and a 7.4% decrease from $120.4 million during the same period last year. However, subscription services revenue increased by 21% year-over-year, totalling $24.1 million for the quarter.
The company reported product support revenues of $61.7 million, a 6.6% decline compared to the Q2 of last year. The world’s largest corporate Bitcoin holder also reported a net loss of $102.6 million for Q2, an improvement from the $137 million net loss in the same quarter last year.
MicroStrategy’s “BTC Yield” Shows 12.2% Year-to-Date Growth
MicroStrategy also introduced a new key performance indicator called “Bitcoin Yield,” which tracks the percentage change in the ratio of Bitcoin holdings to diluted shares outstanding over time. Diluted shares outstanding include all of the company’s common stock plus any additional shares from convertible notes or exercising stock options. MicroStrategy said its BTC yield stands at 12.2% year-to-date, and it will hit 4% to 8% annually over each of the next three years.
The statement read:
“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. The Company believes this KPI can be used to supplement an investor’s understanding of its decision to fund the purchase of bitcoin.”
MicroStrategy Executives Optimistic About Bitcoin Strategy Despite Price Volatility
MicroStrategy CEO Phong Le is optimistic about the future, emphasizing the firm’s strong focus on BTC development and achieving positive Bitcoin yield. The CFO pointed out the firm’s efforts in ‘closely managing’ its equity capital. However, investors are wary of BTC price fluctuations and their potential impact on the company’s financial health.
MicroStrategy’s 10-for-1 stock split will take effect on August 7. The company also announced it will file a registration statement for a new $2 billion at-the-market equity offering program.
$MSTR announces 10-for-1 Stock Split https://t.co/u7sIjWc9we
— Michael Saylor⚡️ (@saylor) July 11, 2024
MicroStrategy’s aggressive Bitcoin accumulation and new performance metrics underscore its commitment to integrating Bitcoin into its treasury and operations. The company seeks to use its position as the largest corporate Bitcoin holder to enhance shareholder value despite short-term price volatility affecting quarterly results.
Market Impact and Future Outlook
MicroStrategy’s strategy has inspired other companies, such as Metaplanet, to start accumulating Bitcoin. This trend highlights Bitcoin’s growing recognition as an inflation hedge and valuable asset. Analyst Peter Brandt has also weighed in on the Bitcoin versus gold debate, contributing to the broader discussion on Bitcoin’s role in financial strategies. Despite financial challenges and market volatility, MicroStrategy remains dedicated to Bitcoin. CEO Le also highlighted the rising institutional and political support for Bitcoin, as seen at the Bitcoin 2024 Conference in Nashville.
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