Microstrategy Reports Holding 226,500 Bitcoins in Q2 Earnings, Revenue Declines 7.4%

Bitcoin development company MicroStrategy reported that it has expanded its Bitcoin holdings to 226,500 in the second quarter of 2024 highlighting the firm’s ongoing strategic focus on Bitcoin acquisition.

The software firm reported in its second quarter, it has acquired an additional 12,222 bitcoins, investing $805.2 million at an average price of $65,882 per bitcoin.

In its earnings call the company reported that it has expanded its Bitcoin holdings to 226,500 bitcoins as of July 31, with an aggregate purchase price of approximately $8.3 billion, averaging $36,821 per bitcoin.

Revenue Declines 7.4% in Q2

MicroStrategy reported second-quarter revenue was $111.4 million, a 7.4% decrease, compared to the second quarter of 2023.

In addition to its cryptocurrency activities, MicroStrategy reported growth in its software business with its subscription services revenues reaching $24.1 million, marking a 21% increase year-over-year.

However, its product licenses and subscription services revenues were $33.4 million, a 5.7% decrease compared to the second quarter of 2023. MicroStrategy reports its product support revenues were $61.7 million, down 6.6%, compared to the second quarter of 2023.

Saylor’s Aggressive Bitcoin Buying Strategy Continues

The company continues to focus more on its aggressive Bitcoin buying strategy. MicroStrategy executive chairman Michael Saylor continues to make huge investments in Bitcoin reflecting the firm’s commitment to leveraging crypto as a key component of its financial strategy.

In March, Saylor said he sees no reason to sell any of his Bitcoin anytime soon,

The increase in holdings was supported by the company’s capital markets activities, including the issuance of $800 million in 2.25% convertible senior notes due 2032.

This allowed MicroStrategy to strategically manage its capital structure and finance its Bitcoin purchases. The firm is solidifying its position as one of the largest corporate HODLers of Bitcoin.

BTC Yield is a Performance Indicator

One of the key performance indicators for MicroStrategy’s Bitcoin strategy is the “BTC Yield,” which was reported at 12.2% year-to-date. The “BTC Yield” shows that the Bitcoin holdings have added to shareholder equity.

MicroStrategy also announced a 10-for-1 forward stock split, set to take effect on August 7. This move is designed to increase the liquidity of the company’s stock and make it more accessible to a range of investors.

The firm said it is also preparing for a new $2 billion at-the-market equity offering program, which will provide additional capital to support its growth initiatives and Bitcoin acquisition strategy.

Andrew Kang, MicroStrategy’s Chief Financial Officer, emphasized the strategic importance of these financial manoeuvres, stating that the company’s use of “intelligent leverage” has resulted in significant Bitcoin accretion for shareholders.