Virginia-based MicroStrategy continues to strengthen its cryptocurrency strategy. On August 1, the company filed with the U.S. Securities and Exchange Commission to raise $2 billion by selling its class A shares.
Increased Bitcoin Holdings
MicroStrategy reported significant growth in its Bitcoin holdings in its Q2 2024 financial results. Since the beginning of the quarter, the company acquired 12,222 bitcoins at an average price of $65,882 per bitcoin. This acquisition brought its total holdings to 226,500 BTC, purchased for $8.3 billion at an average cost of $36,821 per bitcoin. In July 2024, the company purchased an additional 169 BTC for $11.4 million.
Financial Performance
Beyond its Bitcoin strategy, MicroStrategy saw a 21% year-over-year increase in subscription services revenues, totaling $24.1 million. The company successfully raised $800 million through a convertible senior notes offering and announced a 10-for-1 stock split effective August 7, 2024. However, the company reported a net loss of $123 million in Q2, a slight improvement from the $137 million loss in the same quarter of 2023. MicroStrategy President and CEO Phong Le highlighted the introduction of 'BTC Yield' as a key performance indicator, measuring the percentage change in the ratio of Bitcoin holdings to assumed diluted shares outstanding. Year-to-date, MicroStrategy achieved a BTC Yield of 12.2%, targeting an annual yield of 4-8% from 2025 to 2027.
Future Plans
The funds are earmarked for 'general corporate purposes, including the acquisition of Bitcoin.' The filing did not specify the exact timeline for the share sale or the amount of proceeds to be used for Bitcoin purchases. However, it stated the company’s intention to use the raised funds to bolster its Bitcoin holdings. MicroStrategy's shares fell 6.36% to $1,511 in the last 24 hours.
MicroStrategy continues to actively increase its Bitcoin reserves despite losses and stock volatility. The company's financial performance indicates serious intentions to maintain leading positions in the cryptocurrency market.
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