MicroStrategy Reports Loss, Increases Bitcoin Holdings

MicroStrategy reported substantial financial losses in Q2 2024, with earnings per share at -$5.74 and revenue at $111.4 million, falling short of analyst expectations. Despite these losses, the company significantly increased its Bitcoin holdings to 226,500 BTC, valued at approximately $14.7 billion, acquired at an average price of $36,821 per BTC. MicroStrategy introduced a new key performance indicator, 'BTC Yield,' which currently stands at 12.2% year-to-date and aims for 4-8% annual growth over the next three years. The firm announced a 10:1 stock split effective August 7 and plans to raise $2 billion through an at-the-market equity offering. Analysts have raised concerns about the company's ability to manage its cash flow and cover interest expenses on its convertible debt, particularly given the stagnation in its software revenue. Despite these challenges, MicroStrategy remains committed to its Bitcoin acquisition strategy, leveraging various financial maneuvers to maintain and grow its holdings.