MicroStrategy Reports Q2 Results: Holds 226,331 Bitcoin Worth $8.329 Billion

MicroStrategy Incorporated MSTR shares are up slightly after the company reported its second-quarter financial results Thursday. Here's a look at the details from the report. 

• Quarterly losses of $5.74 per share, missing the analyst consensus estimate of losses of 11 cents.
• Quarterly revenue came in at $111.4 million, missing the analyst consensus estimate of $122.6 million by 9.14% — a 7.48% decrease from the same period last year.
• As of June 30, the carrying value of the company’s digital assets (comprised of approximately 226,331 bitcoins) was $5.688 billion.
• Cumulative impairment losses hover $2.6 billion since acquisition and an average carrying amount per Bitcoin BTC/USD of approximately $25,131.

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The original cost basis and market value of MicroStrategy’s bitcoin were $8.329 billion and $14.016 billion, respectively, which reflects an average cost per bitcoin of approximately $36,798 and a market price per bitcoin of $61,926.69, respectively.

The company reported year-to-date bitcoin yield of 12.2%. MicroStrategy said it now uses bitcoin yield as a KPI to help assess the performance of its strategy of acquiring bitcoin in a manner the company believes is accretive to shareholders.

“After yet another successful quarter for our bitcoin strategy, MicroStrategy today holds 226,500 bitcoins reflecting a current market value 70% higher than our cost basis. We remain laser-focused on our Bitcoin development strategy and intend to continue to achieve positive “BTC Yield,” which is a new KPI that we are introducing, targeting 4-8% annually, over each of the next three years,” said Phong Le, President and CEO of MicroStrategy.

“On the adoption front, we are extremely optimistic with the improved understanding of bitcoin and the increasing support for the ecosystem from bipartisan politicians and institutions on display at the Bitcoin 2024 Conference in Nashville. We also continue to see increased global adoption of our cloud-powered BI and AI software, achieving another quarter of strong double-digit growth in both subscription revenue and subscription billings,” added Le.

MSTR Price Action: According to Benzinga Pro, MicroStrategy shares are up 0.78% after-hours at $1,523.63 at the time of publication Thursday.

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