MicroStrategy Incorporated (Nasdaq: MSTR) reported its second quarter 2024 financial results, revealing an increase in its bitcoin holdings. The company acquired 12,222 bitcoins since the beginning of the quarter, at an average price of $65,882 per bitcoin, bringing its total holdings to 226,500 btc, purchased for $8.3 billion at an average cost of $36,821 per bitcoin, as of July 31. In July alone, MicroStrategy acquired an additional 169 btc for $11.4 million, Michael Saylor announced.
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In July, twitter.com/MicroStrategy?ref_src=twsrc%5Etfw”>@MicroStrategy acquired an additional 169 btc for $11.4 million and now holds 226,500 btc. Join us at 5:00 pm ET as we discuss our Q2 2024 financial results, outlook for the upcoming quarter, and twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw”>$btcand ours twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin development strategy. twitter.com/search?q=%24MSTR&src=ctag&ref_src=twsrc%5Etfw”>$MSTRhttps://t.co/cfGPc42jfM
—Michael Saylor (@saylor) twitter.com/saylor/status/1819102944744161537?ref_src=twsrc%5Etfw”>August 1, 2024
Chairman and CEO Phong Le highlighted the firm’s focus on its bitcoin strategy, introducing “btc yield” as a key performance indicator. This metric measures the percentage change in the ratio of the firm’s bitcoin holdings to its supposedly diluted shares outstanding. Year-to-date, MicroStrategy has achieved a btc yield of 12.2%, with the goal of an annual return of 4-8% between 2025 and 2027.
In addition to its bitcoin strategy, MicroStrategy reported a 21% year-over-year increase in subscription services revenue, which totaled $24.1 million. The company also successfully raised $800 million through a convertible senior notes offering and announced a 10-for-1 stock split that will take effect on August 7, 2024.
“Since the beginning of the second quarter, we have increased our bitcoin holdings by adding 12,222 bitcoins due to proceeds from our capital markets activities and excess cash,” said CFO Andrew Kang. “In addition, earlier this month we announced a 10-for-1 stock split. We continue to closely manage our common stock and are filing a registration statement for a new $2 billion at-the-market equity offering program. Through our use of intelligent leverage, we have again achieved a ‘btc return’ of 12.2% year-to-date, which we believe demonstrates significant bitcoin accumulation for shareholders.”
As of June 30, 2024, the original cost basis and market value of MicroStrategy's bitcoin were $8.3 billion and $14 billion, reflecting an average cost per bitcoin of $36,798 and a market price per bitcoin of $61,926.69.
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