Michael Saylor's MicroStrategy Bought 169 Bitcoin For $11.4 Million In July
MicroStrategy Incorporated (Nasdaq: MSTR) reported its financial results for Q2 2024, revealing an increase in its Bitcoin holdings. The company acquired 12,222 bitcoins since the beginning of the quarter, at an average...
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MicroStrategy Incorporated (Nasdaq: MSTR) reported its financial results for Q2 2024, revealing an increase in its Bitcoin holdings. The company acquired 12,222 bitcoins since the beginning of the quarter, at an average price of $65,882 per bitcoin, bringing its total holdings to 226,500 BTC, purchased for $8.3 billion at an average cost of $36,821 per bitcoin, as of July 31st. In July alone, MicroStrategy acquired an additional 169 BTC for $11.4 million, Michael Saylor announced.
In July, @MicroStrategy acquired an additional 169 BTC for $11.4 million and now holds 226,500 BTC. Please join us at 5pm ET as we discuss our Q2 2024 financial results, the outlook for $BTC, and our #Bitcoin development strategy. $MSTRhttps://t.co/cfGPc42jfM
— Michael Saylor⚡️ (@saylor) August 1, 2024President and CEO Phong Le highlighted the company's focus on its Bitcoin strategy, introducing "BTC Yield" as a key performance indicator. This metric measures the percentage change in the ratio of the company's Bitcoin holdings to its assumed diluted shares outstanding. Year-to-date, MicroStrategy achieved a BTC Yield of 12.2%, targeting an annual yield of 4-8% from 2025-2027.
In addition to its Bitcoin strategy, MicroStrategy saw a 21% year-over-year increase in subscription services revenues, totaling $24.1 million. The company also successfully raised $800 million through a convertible senior notes offering and announced a 10-for-1 stock split effective August 7, 2024.
"Since the beginning of Q2, we grew our bitcoin holdings by adding 12,222 bitcoins through proceeds from our capital markets activities and excess cash," said CFO Andrew Kang. "Additionally, we announced a 10-for-1 stock split earlier this month. We continue to closely manage our equity capital, and are filing a registration statement for a new $2 billion at-the-market equity offering program. Through our use of intelligent leverage, we have again achieved a 'BTC Yield' of 12.2% year-to-date, which we believe demonstrates significant bitcoin accretion to shareholders."
As of June 30, 2024, the original cost basis and market value of MicroStrategy’s Bitcoin were $8.3 billion and $14 billion, reflecting an average cost per Bitcoin of $36,798 and a market price per Bitcoin of $61,926.69.
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