MicroStrategy Incorporated (Nasdaq: MSTR) reported its second quarter 2024 financial results and revealed an increase in its Bitcoin holdings. The company has acquired 12,222 Bitcoin since the beginning of the quarter at an average price of $65,882 per Bitcoin, bringing its total holdings to 226,500 BTC as of July 31, purchased for $8.3 billion at an average price of $36,821 per Bitcoin. Michael Saylor announced that in July alone, MicroStrategy acquired an additional 169 BTC for $11.4 million.
In July, @MicroStrategy We acquired an additional 169 BTC for $11.4 million and now hold 226,500 BTC. Join us at 5:00 PM ET to discuss our Q2 2024 financial results and outlook for the future. $BTCand our #Bitcoin Development strategy. $MSTRhttps://t.co/cfGPc42jfM
— Michael Saylor ⚡️ (@saylor) August 1, 2024
President and CEO Phuong Le emphasized the firm’s focus on its Bitcoin strategy and introduced “BTC Yield” as a key performance metric. The metric measures the percentage change between the firm’s Bitcoin holdings and the assumed diluted number of shares outstanding. MicroStrategy has achieved a BTC yield of 12.2% so far this year and is targeting an annualized yield of 4-8% from 2025 to 2027.
In addition to its Bitcoin strategy, MicroStrategy saw its subscription service revenue grow 21% year over year to $24.1 million. The company also successfully raised $800 million through a convertible note offering and announced a 10-for-1 stock split effective August 7, 2024.
“Since the beginning of the second quarter, we have increased our Bitcoin holdings by 12,222 BTC due to capital market activity and proceeds from excess cash,” CFO Andrew Kang said. “In addition, we announced a 10-for-1 stock split earlier this month. We continue to closely manage our capital position and have filed a registration statement for a new $2 billion at-the-market public offering program. Through our intelligent use of leverage, we have again achieved a 12.2% ‘Yield on BTC’ so far this year, which we believe represents a significant increase in Bitcoin for our shareholders.”
As of June 30, 2024, MicroStrategy’s cost price and market value of Bitcoin are $8.3 billion and $14.0 billion, respectively, with an average cost price per Bitcoin of $36,798 and a market price per Bitcoin of $61,926.69.
