MicroStrategy Incorporated (Nasdaq: MSTR) announced its second-quarter 2024 financial results, revealing an increase in its bitcoin holdings. The company acquired 12,222 bitcoins since the start of the quarter, at an average price of $65,882 per bitcoin, bringing its total holdings to 226,500 bitcoins, purchased for $8.3 billion at an average cost of $36,821 per bitcoin, as of July 31. In July alone, MicroStrategy acquired an additional 169 bitcoins for $11.4 million, Michael Saylor reported.
In July, @MicroStrategy The company acquired an additional 169 BTC for $11.4 million and now has 226,500 BTC. Please join us at 5pm EST as we discuss our Q2 2024 financial results and outlook. BitcoinAnd for us #Bitcoin Development strategy. $MSTRhttps://t.co/cfGPc42jfM
— Michael Saylor⚡️ (@saylor) August 1, 2024
CEO Fong Lee highlighted the company’s focus on its Bitcoin strategy, introducing “Bitcoin Return” as a key performance indicator. This metric measures the percentage change in the company’s Bitcoin holdings relative to its diluted shares outstanding. MicroStrategy has returned 12.2% on Bitcoin to date, and is targeting an annual return of 4% to 8% from 2025 to 2027.
In addition to its Bitcoin strategy, MicroStrategy saw a 21% year-over-year increase in subscription service revenue, totaling $24.1 million. The company also raised $800 million through a convertible senior notes offering and announced a 10-for-1 stock split effective August 7, 2024.
“Since the beginning of the second quarter, we have grown our Bitcoin holdings by adding 12,222 Bitcoin through proceeds from our capital markets activities and excess cash,” said CFO Andrew Kang. “In addition, we announced a 10-for-1 stock split earlier this month. We continue to closely manage our capital, and are filing a registration statement for a new $2 billion equity offering program. Through our use of smart leverage, we have once again achieved a 12.2% “Bitcoin Return” year-to-date, which we believe demonstrates significant Bitcoin growth for shareholders.”
As of June 30, 2024, MicroStrategy’s original base cost and market cap of Bitcoin were $8.3 billion and $14 billion, reflecting an average cost per Bitcoin of $36,798 and a market price per Bitcoin of $61,926.69.
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