MicroStrategy’s Q2 earnings reveals Bitcoin stockpile now $14.7B

MicroStrategy shares jumped just 1% in after-hours trading, with the company posting a net loss of $123 million in the second quarter.

Business intelligence firm MicroStrategy purchased an additional 12,222 Bitcoin 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 Q2 earnings call, MicroStrategy posted significant losses of $5.74 per share on a quarterly revenue of $111.4 million, a 7% decline year-over-year.

This came in way under analyst expectations which pegged a quarterly loss of $0.78 per share and $119.3 million in revenue, per Bloomberg survey data.

Notably, the firm revealed a net loss of $123 million for Q2, a slight improvement from its net loss of $137 million in the same quarter last year.

The firm shared that its total holdings of 226,500 Bitcoin had been acquired at a cost of $8.5 billion, an average price of $36,821 per Bitcoin.

It also unveiled a new key performance indicator called “Bitcoin Yield,” — which represents the percentage change over time in the ratio between the firm’s Bitcoin holdings and its diluted outstanding shares.

Related: Michael Saylor ups BTC price prediction to $13M in bullish keynote

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

MicroStrategy said its BTC yield currently stood at 12.2% in the year-to-date period, noting that it would target a rate of between 4% – 8% annually over the next three years.

“The Company uses BTC Yield as a KPI to help assess the performance of its strategy of acquiring bitcoin in a manner the Company believes is accretive to shareholders,” it said in a statement.

The company also confirmed that its 10:1 stock split — announced initially on July 11 — would be going forward effective Aug. 7.

More Bitcoin buying ahead?

MicroStrategy said it would file a registration form for a $2 billion at-the-market equity offering in a bid to raise further capital, though it did not share what the capital would be used for. 

Historically, MicroStrategy has raised capital with the intent of purchasing additional sums of Bitcoin.

MicroStrategy shares are trading at $1,500, having fallen 6% on the day. The firm’s share price bounced 1.1% in after-hours trading following the release of its Q2 earnings, per TradingView data.