MicroStrategy Adds 169 BTC to Holdings, Unveils New ‘Bitcoin Yield’ KPI

In the year On August 1, MicroStrategy founder Michael Saylor announced that in July the company acquired an additional 169 BTC for $11.4 million, and now holds a total of 226,500 BTC.

The company continues to focus on its bitcoin acquisition strategy. However, it suffered significant crippling losses due to BTC price volatility, resulting in a second straight quarterly loss.

The world's largest BTC corporation is worth $14.6 billion at its current spot price, and it's looking for more.

Total revenue for the second quarter was $111.4 million, down 7.4% from Q2 2023 and below analysts' forecasts of $119.3 million. Gross profit was $80.5 million.

Bitcoin production KPI announced

At the time, the carrying value of BTC holdings was $5.68 billion, reflecting a cumulative impairment loss of $2.64 billion. However, the main spending base was $8.33 billion, with an average spend per bitcoin of $36,798.

According to Fong Le, president and CEO of MicroStrategy, the company's holdings are valued at 70% above our valuation:

“We are laser-focused on our Bitcoin development strategy and intend to continue achieving positive ‘BTC yield,' a new KPI we are introducing, of 4-8 percent annually over the next three years.”

The Bitcoin key performance indicator introduced by MicroStrategy shows the ratio between the company's BTC holdings and the estimated diluted shares over a period of one hundred sessions.

It compares the company's BTC holdings to the best possible total of stocks, including real stocks and everything from convertible notes, stock options and other equity awards.

MicroStrategy uses KPI's to evaluate the performance of the bitcoin strategy in a way that the team believes will reward shareholders. The 2024 BTC yield is up to 12.2% per year, and the company plans to achieve 4-8% annual BTC yield from 2025-2027.

Equity provision

The organization It reported raising $800 million of 2.25% convertible senior notes due 2032 and $650 million of convertible senior notes due 2025.

MicroStrategy Chief Financial Officer Andrew Kang announced the equity offering:

“We will continue to closely manage our equity capital, and we are filing a registration statement for a new $2 billion market equity offering program.”

In July, Saylor announced that the company would soon implement a 10-for-1 stock split, making it more affordable for small investors to get a small exposure to the company's stock.

Shares of MicroStrategy ( MSTR ) fell 6% on the day below $1,500, but settled at $1,569 in after-hours trading.