MicroStrategy’s Bitcoin Purchase and Financial Results
Looking forward, MicroStrategy is actively seeking fresh initiatives to strengthen its Bitcoin-focused strategy instead of resting on its achievements. A key new initiative is the introduction of “BTC Yield” as a significant performance indicator. This pioneering metric aims to evaluate the percentage change in the ratio of the company’s Bitcoin reserves to its estimated diluted shares outstanding. Year-to-date, MicroStrategy has attained an impressive BTC Yield of 12.2%, with ambitions for an annual yield of 4-8% from 2025 to 2027.
In addition to its Bitcoin endeavors, MicroStrategy is also diversifying its revenue channels. The company announced a 21% year-over-year rise in subscription services revenues, totaling .1 million. This growth highlights the firm’s capability to widen its income sources while keeping a strong emphasis on its principal Bitcoin strategy.
Source: bitcoinmagazine.com
Phong Le, President and CEO, emphasized the company’s commitment to its Bitcoin strategy, introducing “BTC Yield” as a crucial performance measurement. This metric assesses the percentage shift in the relationship between the company’s Bitcoin inventory and its estimated diluted shares outstanding. So far this year, MicroStrategy has recorded a BTC Yield of 12.2%, aiming for an annual yield between 4-8% from 2025-2027.
In July, MicroStrategy secured an extra 169 BTC for .4 million, now holding 226,500 BTC. Join us at 5pm ET as we delve into our Q2 2024 financial results, the future of $BTC, and our #Bitcoin strategy. $MSTR
Moreover, alongside its Bitcoin focus, MicroStrategy experienced a 21% rise in subscription services revenues year-over-year, amounting to .1 million. The firm also successfully generated 0 million through a convertible senior notes offering and declared a 10-for-1 stock split set to take effect on August 7, 2024.
CFO Andrew Kang noted that the company has significantly increased its Bitcoin holdings through gains from capital market activities and excess cash. “Since the beginning of Q2, we’ve grown our bitcoin holdings by adding 12,222 bitcoins through our capital markets actions and surplus cash,” said Kang. “We also announced a 10-for-1 stock split earlier this month. We are meticulously managing our equity capital and registering for a new billion at-the-market equity offering program. Thanks to our strategic leverage, we have again achieved a ‘BTC Yield’ of 12.2% year-to-date, showcasing considerable bitcoin appreciation to shareholders.”
New Strategies and Future Projections
— Michael Saylor⚡️ (@saylor) August 1, 2024
MicroStrategy Incorporated (Nasdaq: MSTR) disclosed its financial outcomes for Q2 2024, indicating a growth in its Bitcoin assets. The firm amassed 12,222 bitcoins since the quarter’s onset, at an average cost of ,882 per bitcoin, elevating its complete holdings to 226,500 BTC, acquired for .3 billion at an average of ,821 per bitcoin by July 31st. In just July, MicroStrategy added 169 BTC for .4 million, as revealed by Michael Saylor.
As of June 30, 2024, the original cost basis and market value of MicroStrategy’s Bitcoin were .3 billion and billion, corresponding to an average cost of ,798 and a market price of ,926.69 per Bitcoin. This notable surge in market valuation reflects the company’s strategic insight and dedication to utilizing Bitcoin as a principal asset.
As of June 30, 2024, the original cost basis and market valuation of MicroStrategy’s Bitcoin sat at .3 billion and billion, representing an average Bitcoin cost of ,798 and a market price per Bitcoin of ,926.69.
MicroStrategy has been proactive in capital markets, successfully obtaining 0 million via a convertible senior notes offering. This influx of funds will support the company’s aggressive Bitcoin acquisition approach. Furthermore, the company declared a 10-for-1 stock split effective August 7, 2024, anticipated to enhance accessibility of its shares for a wider audience of investors.
“Since the start of Q2, we have increased our bitcoin assets by acquiring 12,222 bitcoins through our capital market activities and surplus cash,” stated CFO Andrew Kang. “Additionally, we announced a 10-for-1 stock split earlier this month. We’re diligently managing our equity capital and filing for a new billion at-the-market equity offering program. Utilizing intelligent leverage, we have once more reached a ‘BTC Yield’ of 12.2% this year, which we believe showcases substantial bitcoin appreciation for our shareholders.”
