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MicroStrategy announced on Thursday that it had purchased 12,222 bitcoin for $805.2 million since the start of the second quarter.
This acquisition brings its total Bitcoin holdings to 226,500 BTC, bought at an average price of $36,821 per BTC, totaling $8.3 billion as of July 31.
The company introduced a new performance metric, “BTC yield,” which reflects the change in the ratio of its Bitcoin holdings to its diluted shares outstanding. For the year-to-date period, the BTC yield is 12.2%, with an annual target of 4% to 8% over the next three years. This metric is designed to help evaluate the impact of MicroStrategy’s Bitcoin strategy on shareholder value.
CEO Phong Le expressed optimism about the increasing acceptance and understanding of Bitcoin, noting support from politicians and institutions at the Bitcoin 2024 Conference. He also highlighted strong growth in the company’s cloud-based BI and AI software subscriptions.
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Financially, MicroStrategy reported a quarterly loss of $5.74 per share on $111.40 million in revenue, missing analysts’ expectations. Operating expenses increased significantly to $280.8 million, mainly due to impairment losses on digital assets.
The company’s 10-for-1 stock split will take effect on August 7, and it plans a new $2 billion equity offering. Despite a 6% drop in stock price on Thursday to $1,511.81 per share, the stock has risen 120% this year.