2024

Bitcoin

Gains

The post <a href="https://coinpedia.org/news/microstrategys-q2-report-huge-bitcoin-gains-and-rising-financial-losses/">MicroStrategy’s Q2 Report: Huge Bitcoin Gains and Rising Financial Losses</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
MicroStrategy Incorporated has just released its Q2 2024 <a href="https://www.microstrategy.com/press/microstrategy-announces-second-quarter-2024-financial-results-now-holds-226-500-btc_08-01-2024" target="_blank" rel="noreferrer noopener">performance report</a>. The&nbsp; reports show that the company has significantly increased its Bitcoin holdings. However, it is facing substantial financial losses. Let’s dive into the latest updates. 
<h2 class="wp-block-heading" id="h-huge-bitcoin-accumulation">Huge Bitcoin Accumulation</h2> 
In Q2 2024 <a href="https://app.coinpedia.org/company/microstrategy" target="_blank" class="profile-details">microstrategy</a> <img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10122626/info_icon.svg" alt="information" class="info-icons"> <a href="https://app.coinpedia.org/company/microstrategy" target="_blank"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190601/link.svg" alt="link"></a> <a href="http://www.microstrategy.com/" target="_blank" rel="nofollow noopener"> <img decoding="async" src="https://image.coinpedia.org/app_uploads/profile/16585721086295ois1xpkho.png" class="company_logo_img" alt="profile company logo" title="profile company logo"></a> microstrategy Business Intelligence <a href="http://www.microstrategy.com/" target="_blank" rel="nofollow noopener"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10161442/globe.svg" alt="globe icon" title="globe icon"></a> acquired a total of 12,222 bitcoins for $805.2 million. This increased its total holdings to 226,500 BTC. The average cost per Bitcoin is now $36,821. In July <a href="https://app.coinpedia.org/saylor" target="_blank" class="profile-details">michael saylor</a> <img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/10122626/info_icon.svg" alt="information" class="info-icons"> <a href="https://app.coinpedia.org/saylor" target="_blank"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190601/link.svg" alt="link"></a> <img decoding="async" src="https://image.coinpedia.org/app_uploads/profile/1648816240033zhf2edw6ld.png" class="user_profile_img" alt="user_profile_img" title="user_profile_img"> michael saylor Micheal J Saylor is the greatest visionary in the Information Systems industry. An enthusiastic blockchain influencer and a splendid leader. He believes that prudent institutional investors should only consider trusting a crypto-asset network after it has operated reliably for at least ten years without a hard fork. &nbsp; He is an American entrepreneur and business executive,&nbsp; who co-founded &nbsp;Microstrategy, a company that provides business intelligence, mobile software, and cloud-based services, under his leadership Microstrategy has grown at a tremendous rate and made a mark in the BI industry, and he is chairman and CEO of the same Microstrategy. &nbsp;He is a vocal advocate of bitcoin. He is highly skilled in enterprise software, and also has a rich knowledge of numerous fields including analytics, data warehouse, leadership, SaaS, management, cloud computing, startups, professional services, enterprise architecture, mobile devices, and many more. &nbsp; In 1983, he matriculated at the Massachusetts Institute of Technology (MIT) on an air force ROTC scholarship. And then, he joined the Theta delta chi fraternity, through which he met the future co-founder of Microstrategy, Sanju K Bansal. He graduated from MIT in 1987 with a double major in aeronautics, science, technology, and society. He is volunteering at Saylor Academy as a Trustee, which provides free college education to all students worldwide. &nbsp; The way he expertizes himself in Bitcoin, people started calling him the Bitcoin bull, he is the most optimistic person when it comes to Bitcoin. He expects the entrepreneur to keep buying Bitcoin every time it dips. The bitcoin community has begun to rise to the fact that his company might own too much bitcoin. Owning too large a portion of bitcoin could be harmful to the cryptocurrency’s decentralized culture that Bitcoin has so rigorously built over the years. He is still expected to be a principal BTC champion throughout the year. Instructing businesses about Bitcoin potentially through his powerful podcasts and learning courses. &nbsp; msaylor@microstrategy.com EntrepreneurCrypto and Blockchain ExpertAuthor <a href="https://www.facebook.com/michaeljsaylor/" target="_blank" rel="nofollow noopener"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2023/01/27173941/facebook-1.png" alt="facebook icon" title="facebook icon"></a> <a href="https://www.linkedin.com/in/mjsaylor" target="_blank" rel="nofollow noopener"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190603/li.svg" alt="linked icon" title="linked icon"></a> <a href="https://twitter.com/saylor?lang=en" target="_blank" rel="nofollow noopener"><img decoding="async" src="https://image.coinpedia.org/wp-content/uploads/2022/11/09190602/tw.svg" alt="twitter icon" title="twitter icon"></a> revealed that the company bought an additional 169 BTC for $11.4 million. At today’s price of $63,500 per Bitcoin, these holdings are worth about $14.4 billion. 
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 In July, <a href="https://twitter.com/MicroStrategy?ref_src=twsrc%5Etfw">@MicroStrategy</a> acquired an additional 169 BTC for $11.4 million and now holds 226,500 BTC. Please join us at 5pm ET as we discuss our Q2 2024 financial results, the outlook for <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a>, and our <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> development strategy. <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$MSTR</a><a href="https://t.co/cfGPc42jfM">https://t.co/cfGPc42jfM</a>— Michael Saylor
 <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/26a1.png" alt="⚡" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@saylor) <a href="https://twitter.com/saylor/status/1819102944744161537?ref_src=twsrc%5Etfw">August 1, 2024</a>
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<h2 class="wp-block-heading" id="h-financial-struggles-and-key-metrics">Financial Struggles and Key Metrics</h2> 
The firm reported a net loss of $102.6 million for the quarter. This accounts to $5.74 per share. This loss contrasts sharply with last year’s profit. Total revenue fell 7.4% from last year to $111.4 million. However, subscription services revenue increased by 21% to $24.1 million. The loss includes a $180.1 million impairment charge on Bitcoin holdings. 
MicroStrategy introduced a new metric called “BTC Yield.” This metric measures Bitcoin yield relative to the company’s share count. The firm reported a Year-To-Date Bitcoin yield of 12.2%. It aims for 4 to 8% annual growth over the next three years with this metric. 
<h2 class="wp-block-heading" id="h-stock-performance-and-strategic-moves">Stock Performance and Strategic Moves</h2> 
On August 1, <a href="https://www.microstrategy.com/press/microstrategy-announces-second-quarter-2024-financial-results-now-holds-226-500-btc_08-01-2024" target="_blank" rel="noreferrer noopener nofollow">MicroStrategy</a> executed a 10 for 1 stock split. This move aimed to make the stock more accessible. Despite this, shares fell 6.36% to $1,511.81. There was a slight recovery with a 1.06% gain in the after hours trading. The company issued $800 million in convertible notes due in 2032. It also redeemed $650 million in notes due in 2025. Earlier in June, they announced a $500 million convertible notes offering, adding 11,931 BTC to their treasury. 
<h2 class="wp-block-heading" id="h-market-impact-and-future-outlook">Market Impact and Future Outlook</h2> 
MicroStrategy’s strategy has influenced other companies as well. For example, Metaplanet has begun accumulating Bitcoin. This reflects a growing trend of seeing Bitcoin as an inflation hedge and a valuable asset. Analyst Peter Brandt has commented on the Bitcoin versus gold debate, adding to the discussion about Bitcoin’s role in financial strategies. 
Despite financial challenges and market volatility, MicroStrategy remains committed to Bitcoin. CEO Phong Le highlighted the increased institutional and political support for Bitcoin. This was evident at the <a href="https://coinpedia.org/news/bitcoin-nears-69k-as-trump-prepares-to-deliver-historic-speech-at-nashville/" target="_blank" rel="noreferrer noopener">Bitcoin 2024 Conference in Nashville</a>. 
Also Check Out: <a href="https://coinpedia.org/news/microstrategy-adds-169-bitcoin-worth-11-4m-in-july-2024-report/" target="_blank" rel="noreferrer noopener">MicroStrategy adds 169 Bitcoin worth $11.4M in July 2024: Report</a>

MicroStrategy’s Q2 Report: Huge Bitcoin Gains and Rising Financial Losses

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