Business intelligence firm MicroStrategy expanded its Bitcoin portfolio by purchasing an additional 12,222 BTC for $805 million** in Q2 2024. This acquisition brings its total holdings to **226,500 BTC** (worth **$14.7 billion at current prices), reinforcing its position as the world’s largest corporate Bitcoin holder.
Financial Performance Highlights
- Q2 Revenue: $111.4 million (7% YoY decline).
- Net Loss: $123 million (*improved from $137 million in Q2 2023*).
- Bitcoin Holdings Average Cost: $36,821 per BTC (*$8.5 billion total investment*).
The company’s losses exceeded analyst expectations, which projected a $0.78 per-share loss** and **$119.3 million revenue.
Bitcoin Yield: A New KPI
MicroStrategy introduced “Bitcoin Yield”—a metric tracking the percentage change in the ratio of its Bitcoin holdings to diluted outstanding shares. Key details:
- Current Yield: 12.2% (year-to-date).
- Future Target: 4%–8% annually (over the next 3 years).
The firm emphasized this KPI aligns with its strategy to acquire Bitcoin accretively for shareholder value.
👉 Explore how Bitcoin yield impacts corporate treasury strategies
Strategic Moves & Stock Split
- $2 Billion Equity Offering: Filed to raise capital (potential use for additional Bitcoin purchases).
- 10:1 Stock Split: Effective August 7 (aimed at increasing share accessibility).
MicroStrategy reiterated its identity as a “Bitcoin development company”, leveraging financial markets to support the Bitcoin network.
FAQ Section
Q: Why does MicroStrategy hold Bitcoin as a treasury asset?
A: To hedge against inflation and enhance long-term shareholder value through BTC’s appreciating potential.
Q: How does the stock split affect investors?
A: It reduces individual share prices, making them more affordable without altering total market capitalization.
Q: What’s the significance of Bitcoin Yield?
A: It quantifies how Bitcoin acquisitions amplify shareholder equity relative to outstanding shares.
👉 Learn more about corporate Bitcoin adoption trends