MicroStrategy's Q2 Earnings Reveal Bitcoin Reserves Valued at $14.7 Billion

MicroStrategy shares saw a modest increase of 1% in after hours trading, despite the company reporting a net loss of $123 million for the second quarter.

Source:www.trthaber.com

During this period, the business intelligence firm acquired an additional 12,222 Bitcoin for $805 million, bringing its total Bitcoin holdings to 226,500 BTC, valued at $14.7 billion based on current prices. In its Q2 earnings call, MicroStrategy reported significant losses of $5.74 per share against a quarterly revenue of $111.4 million, marking a 7% decline year over year.

These results fell short of analyst expectations, which had forecasted a quarterly loss of $0.78 per share and revenue of $119.3 million. However, the firm did show a slight improvement in its net loss, compared to $137 million in the same quarter of the previous year. MicroStrategy disclosed that its total Bitcoin holdings were acquired at a cost of $8.5 billion, averaging $36,821 per Bitcoin. The company introduced a new key performance indicator, Bitcoin Yield, which measures the percentage change over time in the ratio between its Bitcoin holdings and diluted outstanding shares. Diluted shares outstanding encompass all common stocks and any additional shares resulting from convertible notes or stock options.

MicroStrategy reported its BTC yield at 12.2% for the year to date period and aims to achieve an annual rate of 4% to 8% over the next three years. The Company uses BTC Yield as a KPI to evaluate the effectiveness of its Bitcoin acquisition strategy and its potential benefit to shareholders, the company stated. Additionally, MicroStrategy confirmed that its 10 for 1 stock split, initially announced on July 11, will proceed with an effective date of August 7.

More Purchases of Bitcoin in Awaiting Us

MicroStrategy announced plans to file a registration form for a $2 billion at the market equity offering to raise additional capital, although the specific use of the funds was not disclosed. Historically, the company has used such capital raises to acquire more Bitcoin. Currently, MicroStrategy shares are trading at $1,500, having dropped 6% on the day. However, the share price saw a 1.1% increase in after hours trading following the release of its Q2 earnings report, according to data.

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