MicroStrategy's Q2 Earnings Reveal Bitcoin Valued At $14.7 Billion

MicroStrategy, a leading business intelligence company, disclosed its second-quarter earnings, showing a net loss of $123 million, even with a substantial investment in Bitcoin. Despite this, the company's shares saw a modest increase of 1% in after-hours trading.

In the second quarter of 2024, MicroStrategy purchased an additional 12,222 Bitcoins for $805 million, bringing its total holdings to 226,500 BTC, with a market value of roughly $14.7 billion. However, despite this investment in Bitcoin, the company's quarterly revenue saw a 7% decrease from the previous year, amounting to $111.4 million, which did not meet the expectations of analysts.

The company reported a net loss of $123 million in Q2, an improvement from the $137 million net loss in the same quarter of 2023. MicroStrategy’s Bitcoin holdings were acquired at an average price of $36,821 per Bitcoin, totaling $8.5 billion.

MicroStrategy has unveiled a new key performance indicator (KPI) termed "Bitcoin Yield," which tracks the percentage change in the ratio of the firm's Bitcoin holdings to its diluted outstanding shares over time. Presently, the Bitcoin Yield is at 12.2% year-to-date, aiming for an annual target of 4%–8% over the forthcoming three years.