MicroStrategy adds 12.22K Bitcoin despite Q2 loss

MicroStrategy reported a loss for the second consecutive quarter while holding 226,500 Bitcoin (BTC) in its portfolio. The largest corporate holder of BTC posted a net loss of $123 million for the second quarter showing relief from the $137 million loss in the last quarter.

MSTR’s share price took a dip of 6% in the last trading session but showed a surge of 3.5% in the after-hours session. The company added 12,222 Bitcoin to its digital asset holdings for $805.2 million, or $65,882 per Bitcoin since the beginning of 2nd quarter.

MicroStrategy holds over 226k Bitcoin

As per the report, the company is holding 226,500 BTC (approximately $14.5 billion), which reflects a current market value 70% higher than its cost. It added that the original cost basis and market value of the Company’s bitcoin were $8.329 billion and $14.016 billion, respectively. This reflects an average cost per Bitcoin of around $36,798 and a market price per bitcoin of $61,926.69, respectively.

Phong Le, CEO of MicroStrategy, stated that they remain focused on the BTC development strategy and look ahead to achieve a positive “Bitcoin Yield.” 

Bitcoin Yield is going to be MSTR’s new KPI, and it is targeting 4-8% annually from 2025-2027. Its year-to-date 2024 BTC Yield stood at 12.2%. The company believes this KPI will help investors understand the rationale behind funding bitcoin purchases.

The report highlighted that MSTR issued $800 million in convertible notes in June 2024 of 2.250% Convertible Senior Notes due 2032. MicroStrategy reported a loss from operations of $200.3 million for Q2 2024, compared to $26.7 million in Q2 2023. Its net loss turned out to be $102.6 million, or $5.74 per diluted share, versus a net income of $22.2 million, or $1.52 per diluted share, in Q2 2023.

MSTR shares surged by 200% in the last 6 months

MicroStrategy shares have posted a surge of 200% in the last 6 months despite registering back to back quarterly losses. MSTR is up by 247% in the last year. The company executed a 10 for 1 stock split which resulted in a 6.36% drop in its share price to $1,511 over the last day.

Bitcoin price has seen much more fluctuation over the past 90 days providing some opportunity to add more and HODL. BTC surged by more than 2% in the last 90 days while it printed the red index with a drop of almost 6% in the past 60 days. The largest crypto is still up by 52% on a year-to-date basis. 

BTC is trading at $64,416, at the press time after dipping by 4% in the last 7 days. Its 24 hour trading volume jumped by 13% to stand at $39.6 billion.