MicroStrategy Continues Bitcoin Buying Spree, Reports Q2 Losses
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
MicroStrategy, the business intelligence company known for its massive Bitcoin holdings, has reported its second-quarter results for 2024. The firm continues to buy Bitcoin despite posting significant losses.
As of July 31, 2024, MicroStrategy held 226,500 Bitcoin. They bought these coins for $8.3 billion, averaging $36,821 per Bitcoin. At the current price of $63,500, their Bitcoin is worth about $14.4 billion.
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
MicroStrategy Announces Net Losses
The company reported a net loss of $102.6 million for Q2. This equals $5.74 per share. Last year, they made a profit of $22.2 million in the same quarter. The loss came mainly from a $180.1 million charge on their Bitcoin holdings.
MicroStrategy’s revenue was $111.4 million, down 7% from last year. This was less than what experts expected. The company’s stock price fell 6.5% before the earnings report came out.
Despite the losses, MicroStrategy keeps buying Bitcoin. Since the start of Q2, they have bought 12,222 more bitcoins for $805.2 million. The company believes in Bitcoin’s long-term value.
Michael Saylor, MicroStrategy’s Executive Chairman, is known for his strong support of Bitcoin. CEO Phong Le said they’re happy about the growing support for Bitcoin from politicians and institutions.
MicroStrategy introduced a new way to measure their Bitcoin strategy’s success. They call it “BTC yield.” This shows how their Bitcoin holdings compare to their total potential shares. They aim for a 4% to 8% BTC yield each year for the next three years.
The company plans to make its stock easier to buy. They’re doing a 10-for-1 stock split on August 7. This means each share will be split into ten, making the price per share lower.
MicroStrategy also wants to raise more money. They plan to file for a new $2 billion stock offering program. This could help them buy even more Bitcoin in the future.
Despite the Q2 losses, MicroStrategy’s stock is doing well overall. It’s up 120% since the start of 2024. This shows that many investors still believe in the company’s Bitcoin strategy.
As Bitcoin’s price goes up and down, MicroStrategy’s financial results will likely keep changing too. But for now, they seem committed to their Bitcoin-focused approach, even when it leads to short-term losses.
