MicroStrategy Incorporated (Nasdaq: MSTR) continues to reinforce its position as a corporate leader in Bitcoin adoption with its latest acquisition. The company's Q2 2024 financial results reveal strategic additions to its cryptocurrency portfolio.
MicroStrategy's Growing Bitcoin Treasury
Key highlights from the report:
- Total Holdings: 226,500 BTC (as of July 31, 2024)
- Quarterly Acquisition: 12,222 BTC added in Q2
- July Purchase: 169 BTC for $11.4 million
Average Purchase Price:
- Current Quarter: $65,882/BTC
- Lifetime Average: $36,821/BTC
- Total Investment: $8.3 billion
"The company's Bitcoin strategy remains central to our vision," stated CEO Phong Le during the earnings call. "Our BTC Yield metric demonstrates tangible value creation for shareholders."
👉 Discover how corporations are adopting Bitcoin
Financial Strategy and Performance Metrics
MicroStrategy introduced "BTC Yield" as a core performance indicator, measuring Bitcoin accretion relative to diluted shares. Year-to-date figures show:
| Metric | Value |
|---|---|
| BTC Yield (YTD) | 12.2% |
| Target Annual Yield | 4-8% |
| Target Period | 2025-2027 |
CFO Andrew Kang emphasized: "Through intelligent leverage and capital markets activities, we've maintained strong Bitcoin accumulation while expanding our equity position."
Business Highlights Beyond Bitcoin
The company reported diversified growth:
- Subscription Services: 21% YoY revenue increase ($24.1 million)
- Capital Raise: $800 million via convertible notes
- Corporate Action: 10-for-1 stock split (effective August 7, 2024)
Bitcoin Valuation Snapshot
As of June 30, 2024:
- Cost Basis: $8.3 billion
- Market Value: $14 billion
Price Per BTC:
- Average Cost: $36,798
- Market Price: $61,926.69
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Frequently Asked Questions
Q: Why does MicroStrategy keep buying Bitcoin?
A: The company views Bitcoin as a superior store of value and hedge against inflation. Their strategy focuses on long-term appreciation and shareholder value creation through BTC accumulation.
Q: How does BTC Yield work?
A: This metric tracks the percentage change in Bitcoin holdings relative to diluted shares outstanding. It measures how effectively the company grows Bitcoin assets per share.
Q: What's the significance of the stock split?
A: The 10-for-1 split makes shares more accessible to retail investors while maintaining overall market capitalization. It doesn't affect the company's Bitcoin holdings or strategy.
Q: How does MicroStrategy fund its Bitcoin purchases?
A: Through a combination of excess cash, debt offerings (like convertible notes), and equity financing. The company carefully manages its capital structure to optimize Bitcoin acquisition.
Q: What happens if Bitcoin's price drops significantly?
A: MicroStrategy accounts for volatility in its strategy. The company maintains sufficient liquidity and doesn't use leverage that would require margin calls on its Bitcoin holdings.