MicroStrategy Incorporated reported financial results of Q2 2024. The company revealed that its Bitcoin holdings had increased. Since the start of the quarter the company has acquired 12,222 Bitcoins at an average of $65,882 each. This brings its total bitcoin holdings up to 22,500 BTC. These were purchased at $8.3 Billion at an Average Cost of $36,821 bitcoin as of July 31st. In July alone, MicroStrategy acquired an additional 169 BTC for $11.4 million, Michael Saylor announced.
This July, @MicroStrategy Purchased 169 BTC at $11.4 Million and holds now 226,500 BTC. We will be discussing our financial Q2 results and the outlook for $BTCOurs and yours #Bitcoin Development strategy $MSTRhttps://t.co/cfGPc42jfM
— Michael Saylor⚡️ (@saylor) August 1, 2024
Phong Le is the president and CEO at Phong Le. He has highlighted that Bitcoin will be a key part of their strategy. “BTC Yield” This metric is used as an important performance indicator. This measure measures the change in percentage of the Bitcoin holdings of the company to the assumed number of outstanding shares. MicroStrategy’s BTC Yield is 12.2% for the year to date. It targets an annual return of 4-8% from 2025-2027.
MicroStrategy’s subscription service revenues grew by 21% over the past year, to $24.1million. It also raised $800 million via a convertible senior note offering, and announced an upcoming 10-for-1 split in stock effective August 7, 2020.
“Since the beginning of Q2, we grew 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 closely manage our equity capital, 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 to shareholders.”
By June 30th 2024 the cost of MicroStrategy’s Bitcoin was $8.3 Billion and its market value $14 Billion, which translates to an average price of Bitcoin at $36,798. The market price of Bitcoin is $61,926.69.
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Source: bitcoinmagazine.com
