MicroStrategy Posts $123M Net Loss in Q2, Stock Climbs on Bitcoin Holdings Bet

The company narrowed its quarterly losses on the back of lower impairment losses and a strategic increase in Bitcoin holdings, which now total 226,500 BTC.

Tech firm MicroStrategy (NASDAQ:MSTR) posted a net loss of $123 million for the second quarter, an improvement from the $137 million loss in the previous quarter.

The company narrowed its quarterly losses on the back of lower impairment losses and a strategic increase in Bitcoin holdings, which now total 226,500 BTC.

Following the earnings announcement, MicroStrategy’s stock climbed 4.18% in after-hours trading as of press time, reflecting investor confidence in the company’s strategic direction and financial performance.

The adjusted loss per share for the quarter was $7.62, slightly better than the previous quarter’s loss of $8.26 per share. Comparatively, the firm reported an EPS of $2.35 in the same quarter of 2023.

Revenue for the second quarter was $111.4 million, below the consensus estimate of $122 million, and down from $115.2 million in the previous quarter and $120.4 million during the same period last year.

Meanwhile, the firm reported a 21% year-over-year increase in subscription services revenues, totaling $24.1 million for the quarter.

MicroStrategy continued expanding its Bitcoin portfolio during the second quarter, acquiring 12,222 BTC at an average price of $65,882 each. The company further increased its holdings in July by acquiring an additional 169 BTC for $11.4 million.

The company’s total holdings stand at 226,500 BTC, purchased for $8.3 billion at an average cost of $36,821 per Bitcoin as of July 31.

MicroStrategy introduced “BTC Yield” as a new key performance indicator to measure the percentage change in the ratio of its Bitcoin holdings to its assumed diluted shares outstanding.

Based on the metric, the firm achieved a BTC Yield of 12.2% year-to-date, with an annual target yield of 4-8% from 2025-2027.

The company also recently raised $800 million through a convertible senior notes offering and announced a 10-for-1 stock split effective Aug. 7.

Finally, MicroStrategy continued to manage its equity capital closely, filing a registration statement for a new $2 billion at-the-market equity offering program.

MicroStrategy’s second-quarter results highlight the company’s efforts to balance its substantial Bitcoin holdings with the growth of its software business. The firm’s future performance will depend on navigating the volatility of the crypto market while advancing its business analytics services.

Mentioned in this articleAssad JafriAJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.

News DeskCryptoSlate is a comprehensive and contextualized source for crypto news, insights, and data. Focusing on Bitcoin, macro, DeFi and AI.

UQUID Integrates USDT on TRON for Seamless Public Transport Payments in Argentina

Latest Bitcoin StoriesCoinbase’s $1.45 billion Q2 revenue exceeds estimates despite decline in transaction revenue

The exchange’s net income for the period was $36 million, compared to a net loss of $97 million in 2023.

Bitfarms boosts production by 33%, increases Bitcoin holdings above 1,000 BTC

Bitftams said it achived these milestones amid a rising Bitcoin mining difficulty and operational hurdles.

MicroStrategy faces scrutiny over cash flow and Bitcoin holdings ahead of Q2 earning

Market analysts question whether MicroStrategy’s debt plans can sustain its Bitcoin ambitions.

Trump’s $499 Bitcoin-themed sneakers sell out swiftly, resell prices spike to $2500

Trump sneaker’s site stated that it is not connected to his political campaign for the White House.

Latest Alpha Market ReportBitcoin vs Ethereum ETFs: A detailed comparison of IBIT and ETHA

CryptoSlate’s latest market report dives deep into the technical and practical differences between BlackRock’s IBIT and ETHA to explain how these products operate.

Latest Press ReleasesXP.GG Gaming Platform Launches with Universal Battle Pass

StarChain Launches $10 Million Presale to Fund Blockchain Ecosystem for Scientific Data Storage and Validation

GOMINING Token Now Available on BingX Exchange

The above is the detailed content of MicroStrategy Posts $123M Net Loss in Q2, Stock Climbs on Bitcoin Holdings Bet. For more information, please follow other related articles on the PHP Chinese website!