MicroStrategy has announced the addition of 12,222 Bitcoin valued at $805 million to its holdings in the second quarter of 2024, pushing its Bitcoin tally to an impressive $14.7 billion. This addition brings MicroStrategy’s total Bitcoin stocks to 226,500 BTC. However, this acquisition spree has taken a toll on the company’s profitability. In the recently announced Q2 results, MicroStrategy registered a net loss of $123 million on a quarterly revenue of $111.4 million, marking a 7% decline year-on-year.
The substantial quarterly losses have exceeded estimates set by financial analysts. Contrary to the projected loss of $0.78 per share and $119.3 million in revenues, as per Bloomberg research, the company’s losses stood high at $5.74 per share. Nevertheless, the $123 million Q2 net loss indicated a slight improvement from its $137 million loss in the same quarter previous year.
MicroStrategy revealed their Bitcoin stockpile was majorly acquired at an average price of $36,821 per Bitcoin, costing a total of $8.5 billion. The company also introduced a new key performance indicator titled “Bitcoin Yield.” This indicator measures the change ratio concerning the company’s Bitcoin holdings and diluted shares over time. Presently, MicroStrategy reported its Bitcoin yield at 12.2% year-to-date. The company aims to achieve a targeted rate of 4%-8% annually in the coming three years.
The firm also confirmed the progression of its 10:1 stock split, initially announced on July 11, which will be effective from August 7. MicroStrategy also shared plans of filing a registration form for a $2 billion at-the-market equity offering to raise more capital. However, it refrained from sharing further plans for the raised capital. Considering the company’s history, it’s plausible the additional funds might be allocated for acquiring more Bitcoins. MicroStrategy shares are currently trading at $1,500 but witnessed a modest bounce of 1.1% in after-hours trading post their Q2 earnings release.