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- MicroStrategy plans to raise $2 billion to expand its Bitcoin holdings, currently at 226,500 BTC.
- The company remains committed to Bitcoin despite reporting a Q2 loss of $102.6 million.
As the world’s first Bitcoin development company, MicroStrategy (Nasdaq: MSTR) is a publicly traded firm dedicated to supporting the Bitcoin network through its work in financial markets, advocacy, and technology innovation.
Following CNF’s latest update on MicroStrategy’s Bullish Run: Stock Beats Bitcoin with 115% YTD Growth, MicroStrategy announced a 10-for-1 stock split and continued its aggressive Bitcoin acquisition strategy, adding 12,222 Bitcoins in the quarter.
This brings their total holdings to 226,500 Bitcoins, acquired at a total cost of $8.3 billion, significantly below their current market value of $14.4 billion. Blockchain researcher Collin Brown noted in a tweet that MicroStrategy reported a Q2 loss of $102.6 million, primarily due to an impairment charge of $180.1 million.
🚨 MicroStrategy reports a Q2 loss of $102.6M and an impairment charge of $180.1M. Despite this, it holds 226,500 BTC, bought at an average of $36,821 each, totaling $8.3B in purchase cost with a current value of $14.4B. The company plans to raise $2B more to expand its Bitcoin… pic.twitter.com/dFtgzljLfa
— Collin Brown (@CollinBrownXRP) August 2, 2024
Despite these losses, the company remains focused on its Bitcoin holdings, which were acquired at an average price of $36,821 each. They introduced a new performance metric, “BTC Yield,” which stood at 12.2% year-to-date, and aim for a 4-8% annual BTC Yield through 2027.
MicroStrategy also raised $800 million through convertible senior notes and is planning a $2 billion equity offering to further expand its Bitcoin holdings. The company’s revenue for Q2 was $111.4 million, a slight decrease from the previous year, offset by a 21% increase in subscription services revenue.
MicroStrategy’s leadership remains optimistic about Bitcoin’s adoption and continues to position the company as a leading Bitcoin development firm.
While the company currently holds 226,500 BTC, at the time of writing, According to CoinMarketCap data, BTC is priced at $64,322.58, which surged by 0.03% in the last day and decreased by 4.01% in the past week. See the price chart below.
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