MicroStrategy, the business intelligence firm known for its significant Bitcoin investments, reported a net loss of $123 million for the second quarter. Despite the financial hit, the company’s Bitcoin stockpile has grown, now valued at $14.7 billion.
Bitcoin Accumulation Continues
In Q2, MicroStrategy acquired an additional 12,222 Bitcoins for $805 million, increasing its total holdings to 226,500 BTC. The firm’s average acquisition price per Bitcoin stands at $36,821, with a total cost of $8.5 billion. This aggressive accumulation strategy underscores the company’s commitment to Bitcoin as a core component of its financial strategy.
Financial Performance and New KPI Introduction
MicroStrategy’s Q2 revenue was $111.4 million, marking a 7% year-over-year decline. This performance fell short of analyst expectations, which anticipated a smaller loss of $0.78 per share and $119.3 million in revenue. The reported net loss per share was $5.74, significantly higher than forecasted.
In a notable development, the company introduced a new key performance indicator (KPI) called “Bitcoin Yield.” This metric measures the percentage change in the ratio of Bitcoin holdings to diluted outstanding shares over time. The firm reported a year-to-date Bitcoin Yield of 12.2% and aims for an annual yield of 4% to 8% over the next three years. This KPI aims to help assess the effectiveness of the company’s Bitcoin acquisition strategy in enhancing shareholder value.
Also Read: MicroStrategy Announces 10-for-1 Stock Split Amid Bitcoin Holdings Surge
Stock Split and Future Plans
MicroStrategy also confirmed its upcoming 10:1 stock split, scheduled to take effect on August 7. Additionally, the company plans to file a registration form for a $2 billion at-the-market equity offering, potentially to raise capital for further Bitcoin purchases. Historically, MicroStrategy has utilized raised capital for this purpose, signaling continued bullishness on Bitcoin.
MicroStrategy’s stock experienced a modest 1.1% increase in after-hours trading, closing at around $1,500 per share. The stock had dropped 6% earlier in the day, reflecting the mixed sentiments around the company’s financial performance and ongoing Bitcoin strategy.
