MicroStrategy’s Bitcoin bet is getting bigger. Unfortunately, the company’s bottom line tells a different story.
MicroStrategy’s aggressive Bitcoin buying spree continued in Q2, with the company adding 12,222 BTC to its holdings for a hefty $805 million. This brings its total Bitcoin stash to a staggering 226,500 BTC, currently valued at approximately $14.7 billion. However, this bullish Bitcoin bet hasn’t translated to profitability, as MicroStrategy reported significant losses of $5.74 per share.
During its Q2 earnings call, MicroStrategy reported losses of per share on quarterly revenue of $111.4 million, marking a 7% year-over-year decline. These losses were significantly higher than analysts’ expectations, which forecasted a loss of $0.78 per share and $119.3 million in revenue, according to Bloomberg.
However, the company disclosed a net loss of $123 million in Q2, a slight improvement from the $137 million net loss reported in the same quarter of 2023.
MicroStrategy’s total Bitcoin holdings were acquired for $8.5 billion at an average price of $36,821 per Bitcoin. The firm introduced a new key performance indicator, “Bitcoin Yield,” which measures the percentage change in the ratio between its Bitcoin holdings and its diluted outstanding shares. As of now, the BTC yield stands at 12.2% year-to-date, with a target of 4%–8% annually over the next three years.
In a bid to boost shareholder value, the company has confirmed its 10:1 stock split, set to take effect on August 7. Additionally, MicroStrategy announced plans to raise up to $2 billion through an at-the-market equity offering. Given the company’s history of using fresh capital to accumulate more Bitcoin, it’s likely these funds will be channeled into further crypto purchases.
Despite the company’s financial performance, MicroStrategy shares saw a slight uptick in after-hours trading following the earnings release, although they remain down 6% on the day.
