MicroStrategy Q2 financial report: holding $14.7 billion in Bitcoin

Author: Tom Mitchelhill, CoinTelegraph; Compiler: Tao Zhu, Golden Finance

Business intelligence company MicroStrategy purchased an additional 12,222 bitcoins for $805 million in the second quarter of this year, bringing its total bitcoin holdings to 226,500 BTC - worth $14.7 billion at current prices.

In its second-quarter earnings call, MicroStrategy reported a huge loss of $5.74 per share on quarterly revenue of $111.4 million, down 7% year-on-year.

That was well below analysts' expectations, who expected a quarterly loss of $0.78 per share and revenue of $119.3 million, according to Bloomberg survey data.

MicroStrategy reported a $111.4 million decline in second quarter revenue. Source: MicroStrategy

Notably, the company reported a net loss of $123 million in the second quarter, a slight improvement from a net loss of $137 million in the same period last year.

MicroStrategy reports a net loss of $123 million in the second quarter. Source: MicroStrategy.

The company said its bitcoin holdings totaled 226,500, acquired at a cost of $8.5 billion and at an average price of $36,821 per bitcoin.

The company also announced a new key performance indicator called "Bitcoin Yield," which represents the percentage change over time in the ratio between the company's bitcoin holdings and its diluted outstanding shares.

Diluted shares outstanding include all of the company’s common stock and any additional shares resulting from convertible notes or the exercise of stock options.

MicroStrategy said its BTC yield is currently 12.2% year-to-date, noting that it is targeting yields between 4% and 8% per year over the next three years.

“The company uses BTC yield as a KPI to help evaluate the performance of its strategy to acquire Bitcoin in a manner that the company believes is beneficial to shareholders,” the company said in a statement.

The company also confirmed that its 10:1 stock split, originally announced on July 11, will take effect on August 7.

More Bitcoin to come?

MicroStrategy said it would file a registration form for a $2 billion stock offering to raise more money, but did not disclose what the funds would be used for.

Historically, MicroStrategy has raised funds to buy more Bitcoin.

MicroStrategy shares are currently trading at $1,500, down 6% on the day. The company's shares rebounded 1.1% in after-hours trading after the release of second-quarter earnings, according to TradingView data.

MicroStrategy shares fell 6% on the day but rebounded 1% in after-hours trading. Source: TradingView