MicroStrategy Incorporated (Nasdaq: MSTR) reported its Q2 2024 financial results, showing 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.
In July, @MicroStrategy acquired an additional 169 BTC for $11.4 million and now owns 226,500 BTC. Join us at 5pm ET as we discuss our Q2 2024 financial results, outlook for $BTCand our #Bitcoin development strategy. $MSTRhttps://t.co/cfGPc42jfM
— Michael Saylor⚡️ (@saylor) August 1, 2024
President and CEO Phong Le emphasized the company’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 company’s Bitcoin holdings to its assumed diluted shares outstanding. To date, MicroStrategy has achieved a BTC Yield of 12.2%, with a target annual return of 4-8% from 2025-2027.
In addition to its Bitcoin strategy, MicroStrategy saw a 21% year-over-year increase in subscription service revenue, reaching $24.1 million. The company also successfully raised $800 million through a convertible senior notes offering and announced a 10-for-1 stock split effective August 7, 2024.
“Since the beginning of Q2, we have increased our bitcoin holdings by adding 12,222 bitcoins through proceeds from our capital markets activities and excess cash,” said CFO Andrew Kang. “Additionally, we announced a 10-for-1 stock split earlier this month. We continue to carefully manage our equity 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 Yield of 12.2% year-to-date, which we believe demonstrates significant bitcoin accretion for shareholders.”
As of June 30, 2024, MicroStrategy’s initial cost and market cap of Bitcoin were $8.3 billion and $14 billion, respectively, which equates to an average cost per Bitcoin of $36,798 and a market price per Bitcoin of $61,926.69.