MicroStrategy boosts BTC holdings with $805M acquisition in Q2

The previously announced 10-for-1 stock split will be effective by August 7.

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Key Takeaways

MicroStrategy acquired 12,222 bitcoins at an average price of $65,882 each during Q2. The company reported a net loss of $102.6 million due to significant digital asset impairments. <?xml encoding="UTF-8"?>

Business intelligence firm MicroStrategy acquired 12,222 bitcoins for $805.2 million since the start of Q2 2024, bringing its total holdings to 226,500 BTC at an average cost of $36,821 per Bitcoin.

For July, the company’s founder and chairman Michael Saylor announced on X that it has acquired an additional 169 BTC for $11.4 million.

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 company reported subscription services revenue of $24.1 million for Q2, up 21% year-over-year. However, total revenues declined 7.4% to $111.4 million compared to Q2 2023.

MicroStrategy posted a net loss of $102.6 million for the quarter, largely due to $180.1 million in impairment losses on its bitcoin holdings. The company ended Q2 with $66.9 million in cash and cash equivalents.

In June, MicroStrategy issued $800 million in convertible notes due 2032 and announced the redemption of $650 million in convertible notes due 2025. The company also introduced a new “BTC Yield” metric, targeting 4-8% annual growth in bitcoin holdings relative to share count over the next three years.

MicroStrategy’s aggressive Bitcoin accumulation strategy and introduction of new performance metrics highlight its continued focus on integrating bitcoin into its corporate treasury and operations.

The company aims to leverage its status as the largest corporate Bitcoin holder to drive shareholder value, despite short-term volatility in Bitcoin prices impacting quarterly results.

In June, MicroStrategy announced a $500 million convertible notes offering, adding 11,931 BTC to its treasury a few days after.

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