MicroStrategy Expands Bitcoin Holdings, Reports Q2 Loss

Business intelligence firm MicroStrategy has purchased 12,222 bitcoins for $805.2 million since the beginning of Q2 2024, increasing its total holdings to 226,500 BTC at an average cost of $36,821 per BTC.

In July, the company’s founder and chairman, Michael Saylor, revealed that MicroStrategy acquired an additional 169 BTC for $11.4 million.

For Q2, MicroStrategy reported $24.1 million in subscription services revenue, a 21% increase from the previous year. However, total revenue fell by 7.4% to $111.4 million compared to Q2 2023.

The company experienced a net loss of $102.6 million for the quarter, primarily due to $180.1 million in impairment losses on its Bitcoin holdings. By the end of Q2, MicroStrategy had $66.9 million in cash and equivalents.

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Bitcoin and Crypto Market Performance in Q2 2024

In June, MicroStrategy issued $800 million in convertible notes due in 2032 and redeemed $650 million in notes maturing in 2025. The company also introduced a new “BTC Yield” metric, aiming for a 4-8% annual increase in Bitcoin holdings relative to its share count over the next three years.

MicroStrategy’s strategy of accumulating Bitcoin and launching new performance metrics underscores its commitment to integrating Bitcoin into its business operations and enhancing shareholder value, despite short-term Bitcoin price fluctuations. In June, the company also announced a $500 million convertible notes offering, which led to the acquisition of an additional 11,931 BTC.

Alexander Stefanov