The largest corporate holder of Bitcoin, MicroStrategy, reported Bitcoin holdings of $14.7 billion in its second-quarter earnings report.
The firm revealed that it holds 226,500 Bitcoin, with 12,222 being purchased in Q2. In its Q2 earnings report, the business intelligence firm revealed a 7% decline in revenue which came to $111.4 million.
MicroStrategy stock $MSTR dropped 6% on Thursday following the earnings report, despite the company holding major returns on its BTC holdings.
MicroStrategy Releases Its Q2 Earnings Report
In its Q2 2024 financial results, MicroStrategy reported a 7.5% year-over-year decrease in total revenues, which came to $111.4 million.
During the quarter, MicroStrategy also posted a gross profit of $80.5 million, while the operating expenses increased by 134% year-over-year to $280 million.
The company also reported a net loss of $123 million in Q2, which was an improvement compared to the $137 million net loss posted in Q2 2023.
MicroStrategy also revealed a new key performance indicator known as the “Bitcoin Yield.” This indicator represents a percentage over time between the company’s Bitcoin holdings and the diluted outstanding shares.
The firm noted that this performance indicator will help investors to better understand the company’s decision to fund its Bitcoin purchases using additional shares of common stock and other avenues.
The year-to-date Bitcoin Yield came to 12.2%, with the firm saying it plans to hit an annual Bitcoin yield of 4-8% from 2025-2027.
“We remain laser-focused on our Bitcoin development strategy and intend to continue to achieve positive “BTC Yield,” which is a new KPI that we are introducing, targeting 4-8% annually, over each of the next three years,” MicroStrategy reported.
MicroStrategy Plans to Acquire More Bitcoin
While announcing its Q2 2024 performance, the business intelligence firm revealed that it had purchased an additional 169 BTC valued at $11.4 million. The company purchased its BTC stash at an average price of $36,821 per Bitcoin.
MicroStrategy also unveiled plans to file an equity offering of $2 billion to raise more capital. While the company did not reveal the intent of this equity offering, it has historically been using such capital raises to purchase more Bitcoin.
The company is also set to conduct a 10:1 stock split on August 7. MSTR, which recently debuted in the MSCI and Russell 1000 indexes, closed trading on Thursday at $1,511. Despite the recent price drop, the stock remains up by around 120% year-to-date (YTD) according to Google Finance.
Saylor was among the invitees to the Bitcoin 2024 conference where he predicted that the market cap of BTC would hit $280 trillion by 2045. Such a valuation means that Bitcoin’s value will have surged by 280-fold from its current $1.2 trillion valuation.
