MicroStrategy inventory surges over 4% regardless of Q2 web loss as Bitcoin holdings hit 226,500

MicroStrategy posted a web lack of $123 million for the second quarter, an enchancment from the $137 million loss within the earlier quarter.

The corporate narrowed its quarterly losses on the again of decrease impairment losses and a strategic enhance in Bitcoin holdings, which now whole 226,500 BTC.

Following the earnings announcement, MicroStrategy’s inventory climbed 4.18% in after-hours buying and selling as of press time, reflecting investor confidence within the firm’s strategic path and monetary efficiency​

The adjusted loss per share for the quarter was $7.62, barely higher than the earlier quarter’s lack of $8.26 per share. Comparatively, the agency reported an EPS of $2.35 in the identical quarter of 2023.

Income for the second quarter was $111.4 million, under the consensus estimate of $122 million, and down from $115.2 million within the earlier quarter and $120.4 million throughout the identical interval final 12 months. In the meantime, the agency reported a 21% year-over-year enhance in subscription providers revenues, totaling $24.1 million for the quarter.

MicroStrategy continued increasing its Bitcoin portfolio through the second quarter, buying 12,222 BTC at a median value of $65,882 every. The corporate additional elevated its holdings in July by buying an extra 169 BTC for $11.4 million.

The corporate’s whole holdings stand at 226,500 BTC, bought for $8.3 billion at a median value of $36,821 per Bitcoin as of July 31.

MicroStrategy launched  “BTC Yield” as a brand new key efficiency indicator to measure the share change within the ratio of its Bitcoin holdings to its assumed diluted shares excellent. Based mostly on the metric, the agency achieved a BTC Yield of 12.2% year-to-date, with an annual goal yield of 4-8% from 2025-2027.

The corporate additionally not too long ago raised $800 million via a convertible senior notes providing and introduced a 10-for-1 inventory cut up efficient Aug. 7.

MicroStrategy continued to handle its fairness capital carefully, submitting a registration assertion for a brand new $2 billion at-the-market fairness providing program.

MicroStrategy’s second-quarter outcomes spotlight the corporate’s efforts to steadiness its substantial Bitcoin holdings with the expansion of its software program enterprise. The agency’s future efficiency will rely on navigating the volatility of the crypto market whereas advancing its enterprise analytics providers.

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