MicroStrategy Buys $805 Million in Bitcoin in Q2 2024

Investment firm MicroStrategy has maintained its Bitcoin accumulation strategy, and has also announced a new metric to measure its BTC investment activity.

According to its Q2 2024 financial report, software company MicroStrategy said it had purchased an additional 12,222 BTC in the past three months, bringing its Bitcoin holdings to 226,500 BTC, worth more than $14.6 billion at the time of writing.

The figure is a significant increase from the 11,931 BTC purchase announced at the end of June, with the cost funded by a bond offering that MicroStrategy made a few weeks earlier.

In addition, MicroStrategy also announced a new metric to measure its investment activity, called “BTC Yield”. The company’s year-to-date BTC Yield is 12.2%, thanks to Bitcoin’s growth over the past six months. MicroStrategy aims to maintain this ratio between 4% and 8% over the next three years.

BTC Yield is calculated based on the ratio of Bitcoin held by MicroStrategy divided by the number of shares issued by the company. A company representative said:

“The company uses BTC Yield as a metric to evaluate its Bitcoin collection strategy to benefit equity investors. This metric will help investors better understand their decision to purchase Bitcoin by issuing additional shares or debt instruments that can be converted into shares.”

MicroStrategy notes that the BTC Yield metric is not a statistical measure of investment performance, liquidity, or yield in the traditional sense.

CEO Phong Le shared about the company's latest financial report and Bitcoin investment activities:

“On the adoption side, we are extremely optimistic about the increased awareness of Bitcoin and the support for legislation from the US political parties, as demonstrated by the recent Bitcoin 2024 Conference. We also recorded an increase in the usage rate of the company's software and cloud products, as demonstrated by the double-digit growth in service subscription revenue.”

Also at the Bitcoin 2024 Conference, MicroStrategy founder Michael Saylor predicted that Bitcoin will reach $13 million by 2045, as well as providing advice on Bitcoin investment for individual investors, businesses. large organizations. and even national governments.

Saylor also revealed that the company is in the process of preparing to continue raising an additional $2 billion from an equity offering.

$2 Bil Saylor buy incoming soon. https://t.co/BpjNgbX3Wb pic.twitter.com/Gf04HlYGTm— DeFi^2 (@DefiSquared) August 1, 2024

However, MicroStrategy's MSTR stock fell 7% in the last quarter, due to operating expenses of up to $280 million, with $180 million of that coming from the loss of the value of its crypto assets.

In addition, the reason for MSTR's decline in stock price also stems from the decision to split shares at a ratio of 10-1, effective from August 7. Despite that, MSTR is still up 120% since the beginning of the year.